The world of exchange-traded funds (ETFs) may have an untapped market waiting to be explored. Matt Kaufman, head of ETFs at Calamos Investments, believes that there is vast potential in the trillions of dollars currently sitting in CD and money market accounts. Kaufman suggests that this market is even larger than the ETF space itself, presenting a significant opportunity for growth. Speaking on CNBC’s “ETF Edge,” Kaufman highlighted the possibility of capturing this money that is currently on the sidelines and bringing it into the world of ETFs.

Kaufman’s strategy revolves around the belief that interest rates will remain higher for an extended period. In this context, he sees structured and options ETFs as valuable tools for risk management and income generation. Kaufman acknowledges the challenges of obtaining these benefits from traditional bonds, especially when interest rates are at historic lows. However, with rates now rising, there is an opportunity to provide capital protection over a defined period. This shift opens up numerous possibilities for investors seeking stability and income in their portfolios.

Benefits for Investors in a Higher-Rate Environment

One of the key advantages Kaufman sees in ETFs in a higher-rate environment is the potential for outpacing inflation, particularly for retirees. By offering returns greater than the risk-free rate, these ETFs provide a way for investors to keep pace with the market while minimizing downside risk. Furthermore, Kaufman emphasizes the tax-deferred growth aspect of these investments, highlighting their appeal to those looking to enhance their retirement savings.

Matt Kaufman’s firm, Calamos Investments, has recently introduced a suite of 12 structured protection ETFs to capitalize on the opportunities presented by the current market conditions. These new offerings aim to provide investors with the tools they need to navigate the challenges of a higher-rate environment and achieve their financial goals. With an emphasis on risk management, income generation, and capital preservation, these ETFs represent a strategic approach to addressing the evolving needs of today’s investors.

The world of exchange-traded funds is constantly evolving, with new opportunities emerging in unexpected places. Matt Kaufman’s insights shed light on the potential for growth in capturing funds from CD and money market accounts, as well as the benefits of structured and options ETFs in managing risk and generating income. As investors seek ways to navigate the complexities of a higher-rate environment, innovative solutions like the structured protection ETFs offered by Calamos Investments are poised to play a crucial role in shaping the future of the ETF market.


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