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‘A host of cash on the sidelines’: Calamos Investments thinks ETFs have to target CD, cash market clients

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

In accordance to Calamos investments’ Matt Kaufman, there are trillions of bucks at some level of CD and cash market accounts, and it’s far a market ETFs have to gaze to capture.

“That is increased than nearly the ETF establish itself,” the firm’s head of ETFs informed CNBC’s “ETF Edge” earlier this week. “There would possibly maybe be a kind of cash on the sidelines that can dart into this.”

Kaufman, who’s in the hobby rates will cease increased for longer camp, thinks structured and alternate strategies ETFs designed for anxiety administration and profits can present steadiness.

“We noticed it being delicate to rep anxiety administration and profits from bonds when rates had been so low,” he talked about. “As rates luxuriate in moved … off of zero or 4, 5% now, we would possibly maybe give you the cash for to ship capital protection over an consequence duration. And, in the event you would possibly maybe perhaps enact that, there is a kind of alternatives to exercise these products.”

Kaufman talked about ETFs on this increased-payment atmosphere will be critically vital for folks looking out out for alternatives to outpace inflation — especially retirees.

“You would possibly maybe well perhaps be ready to rep increased than the anxiety-free payment. …Your cash is linked to the market with no increased downside anxiety,” Kaufman added. “This is all tax-deferred suppose.”

Kaufman’s firm Calamos correct started launching a series of 12 structured protection ETFs.

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