There could also be an untapped market for exchange-traded funds.
According to Calamos investments’ Matt Kaufman, there are trillions of {dollars} throughout CD and money market accounts, and it’s a market ETFs should look to seize.
“That’s larger than almost the ETF space itself,” the agency’s head of ETFs advised CNBC’s “ETF Edge” earlier this week. “There’s a lot of money on the sidelines that could move into this.”
Kaufman, who’s in the rates of interest will stay higher for longer camp, thinks structured and choices ETFs designed for danger administration and revenue can present stability.
“We saw it being difficult to get risk management and income from bonds when rates were so low,” he mentioned. “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 talked about ETFs on this higher-rate surroundings could be notably useful for folks in search of alternatives to outpace inflation — particularly retirees.
“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.”
Kaufman’s agency Calamos simply began launching a suite of 12 structured protection ETFs.