Trillions
Your Guide to Autocallable Exchange-Traded Funds
A complex new way of investing has peaked the interest of the financial world. But what are these ETFs? Calamos Investments’ Matt Kaufman explains.
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You may not have heard the term “autocallable,” but you will. There’s a new type of high income exchange-traded fund that tracks notes that yield 14% a year, and it’s having instant success with flows pouring in every week since it launched in June. It’s all part of the boom in ETFs using derivatives (instead of stocks or bonds) to generate income streams.