‘A good deal of money on the sidelines’: Calamos Investments thinks ETFs must goal CD, money market customers

There could be an untapped market for alternate-traded funds.

In accordance with Calamos investments’ Matt Kaufman, there are trillions of greenbacks across CD and money market accounts, and it is a market ETFs must look to capture.

“That’s better than nearly the ETF situation itself,” the company’s head of ETFs told CNBC’s “ETF Edge” earlier this week. “There could be a variety of money on the sidelines that would pass into this.”

Kaufman, who is in the passion rates will pause increased for longer camp, thinks structured and ideas ETFs designed for threat administration and income can present balance.

“We noticed it being sophisticated to bag threat administration and income from bonds when rates had been so low,” he said. “As rates comprise moved … off of zero or 4, 5% now, we are in a position to comprise ample money to lift capital protection over an consequence duration. And, must that you simply must possibly well well assemble that, there is a variety of alternatives to employ these merchandise.”

Kaufman mentioned ETFs in this increased-charge atmosphere will seemingly be particularly priceless for folk attempting to search out alternatives to outpace inflation — particularly retirees.

“You’d bag increased than the threat-free charge. …Your money is linked to the market without a increased blueprint back threat,” Kaufman added. “This is all tax-deferred mutter.”

Kaufman’s company Calamos exact started launching a suite of 12 structured protection ETFs.

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