‘A lot of money on the sidelines': Calamos Investments thinks ETFs should target CD, money market customers

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There may be an untapped market for exchange-traded funds.

According to Calamos investments' Matt Kaufman, there are trillions of dollars across CD and money market accounts, and it is a market ETFs should look to capture."We saw it being difficult to get risk management and income from bonds when rates were so low," he said."As rates have moved … off of zero or 4, 5% now, we can afford to deliver capital protection over an outcome period. And, when you can do that, there's a lot of opportunities to use these products.

Kaufman mentioned ETFs in this higher-rate environment can be particularly beneficial for people looking for opportunities to outpace inflation — especially retirees. Why Warren Buffett's shareholders line up at 2 a.m. to see him in Omaha: He's ‘the guy who changed our life' Marine moved from the U.S. to Brussels with her family—our mortgage is under $3,000/month: Take a look inside

"You can get greater than the risk-free rate. …Your money is linked to the market with no greater downside risk," Kaufman added."This is all tax-deferred growth."Santa Ana

 

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