By at least one estimate, 1,110 new exchange traded funds (ETFs) came to market in the U.S. last year. Not surprisingly, that’s a record.
What is surprising is the extent to which that all-time high was established. The prior record was set in 2024 when nearly 740 “infant” ETFs launched in the U.S. In other words, 2025 ETF launches beat the record set a year prior by a staggering 50%. Translation: In the always and increasingly competitive ETF arena, it’s hard for new funds to stand out.
Some do with a prime example being the Calamos Autocallable Income ETF (CAIE). Confirming that it’s resonating with advisors, CAIE debuted last June and already has nearly $740 million in assets under management as of Feb. 20, confirming that the combination of elevated income and downside protection via the ETF wrapper is coveted by wealth managers. Indeed, the Calamos fund is the pioneer in the autocallable ETF arena, but the autocallable concept itself isn’t new.
“Autocallable yield is not a new phenomenon,” notes Morningstar’s Zachary Evens. “Banks issue autocallable yield notes with a promise to deliver consistent payouts as long as the underlying asset stays above a predetermined “barrier” level. Advisors and investors have billions invested in these strategies to deliver high and (mostly) reliable income.”
CAIE is drawing attention from other sources, too.
Calling Attention to Autocallables
As is the case with some new stocks, many fresh-to-market ETFs aren’t widely tracked by analysts, but CAIE isn’t in that camp. In fact, the Calamos fund is one of just five – that’s five out of more than 1,100 – that made the cut on CFRA Research’s list of 2025 new ETFs to watch this year.
The research firm notes autocallable ETFs, including CAIE, “represent an innovation in the continued expansion of the derivatives income ETF ecosystem.” Said another way, CAIE isn’t a typical covered call ETF and that’s a good thing.
However, some income investors embrace old guard options income ETFs because the strategies are easy to understand. They often feel the opposite regarding autocallables, if they’ve even heard the term at all. Fortunately, advisors don’t have to stretch to convey the autocallable concept underpinning CAIE.
“An autocallable yield note is a market-linked instrument that pays regular coupons and returns principal at maturity (or if called early), if a reference index or asset doesn't fall below specific thresholds,” observes CFRA. “It allows investors to get yields that are higher than traditional fixed income yields in exchange for the risk that there is a severe downturn in the underlying reference index or asset. The notes are autocallable, i.e., the issuer automatically “calls” the note if it is at or above the initial level, in which case the investor will receive the full principal, but lose out on any future income if the asset rallies.”
CAIE Methodology Matters
Much of CAIE’s allure is derived from the a laddering methodology that layers a basket of more than 50 autocallables. That not only bolsters the ETF’s income potency, but it diminishes timing risk.
“This approach simplifies access to the asset class and reduces the friction of having to monitor each note individually and manage investments if a note is called early,” according to CFRA. “As of January 2, 2026, there were three ETF issuers that offered products in this category, and CAIE will be an important proxy ETF to assess growth in this new ETF category.”
Regarding the growth of the autocallable ETF category, Calamos is asserting itself and not just by way of CAIE. The Calamos Nasdaq Autocallable Income ETF (CAIQ) debuted last November and already has $110.1 million in assets under management.