Trillions Autocallable ETFs
Nov 6, 2025
In this discussion, Matt Kaufman, Head of ETFs at Calamos Investments, uncovers the intriguing world of autocallable ETFs. He explains how these bond-like notes linked to equity markets provide a high monthly income of around 14%. Matt also walks through the mechanics of how these notes work and the innovative methods Calamos uses to build a diversified ETF strategy. He shares insights on market risks and the unique benefits of using swaps to enhance efficiency while discussing who might benefit from including these structured products in their portfolios.
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Autocallables Are Bondlike But Equity-Tied
- An autocallable behaves like a bond paying monthly income tied to equity performance rather than credit or duration.
- It returns principal at maturity unless the reference equity falls past a deep barrier, combining income with equity-linked principal risk.
Ladder Exposure To Diversify Note Risk
- Ladder many autocallables (weekly/52+) to diversify single-note maturity and coupon risk.
- Diversification smooths income and reduces chance a single breach causes large principal loss.
Early Call Feature Resets Principal Exposure
- An autocallable can be called early if the market is positive after a non-call period, returning principal and final coupon.
- Being called resets the investor to buy a new note if they want continued exposure.