Summary
CWB Chart
CWB's 19% YTD Return Shows How Convertible Bonds Bridge Stock Gains and Income Floor
Convertible bonds sit in an odd corner of capital markets: corporate debt with an embedded equity option, paying coupon income while carrying upside tied to the issuer's stock.
CWB: Bond ETF Looking Like A Low-Volatility Equity ETF
State Street® SPDR® Bloomberg Convertible Securities ETF offers exposure in hybrid assets labelled as bonds, but with strong correlation to equities. CWB's portfolio has low company risk and is dominated by unrated convertible securities and short maturities. Performance and risk metrics position CWB as more compelling than competitors, though yields are variable and currently unattractive for income-focused investors.
CWB: Bond Index ETF With A Taste Of Equities
The SPDR Bloomberg Barclays Convertible Securities ETF holds a portfolio of 300 convertible securities, mostly without credit rating. CWB has a stronger correlation with stocks than with bonds and should be handled like a low-volatility equity ETF. CWB is the oldest and best-performing ETF among its peers.
SPDR Bloomberg Convertible Securities ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 23,946 | $1.78M | $2.48M | $698,869.7 | 39.31% |
| TMB Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 1,460 | $109,551.56 | $150,993.2 | $41,441.64 | 37.83% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 3,544 | $305,430.56 | $365,032 | $59,601.44 | 19.51% |
| JS Jason Skolnick FIRST NATIONAL Corp. /MA/ /ADV | 30,188 | $1.82M | $3.12M | $1.3M | 71.31% |
| RS Ramu Singh CALTON & ASSOCIATES Inc. | 14,499 | $1.24M | $1.5M | $261,589.44 | 21.13% |
SPDR Bloomberg Convertible Securities ETF (CWB) FAQ
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SPDR Bloomberg Convertible Securities ETF Profile
| ARCA Exchange | US Country |
Overview
This fund is dedicated to investing predominantly in U.S. convertible securities, such as convertible bonds and convertible preferred stocks. By channeling at least 80% of its total assets into securities that either are part of its benchmark index or have economic characteristics closely mirroring those of the index's constituents, the fund aims to provide investors with exposure to the convertible securities market. The specific index it tracks is constructed to mirror the performance of the U.S. market for these types of convertible instruments. The investment adviser plays a pivotal role in determining suitable securities that align with the index's economic characteristics, ensuring the fund's portfolio adequately represents the intended market segment.
Products and Services
- Convertible Bonds
- Convertible Preferred Stock
These are corporate bonds that investors can convert into a predetermined number of the company's shares, typically at the discretion of the bondholder. This feature combines the income advantages of bonds with the potential for capital appreciation associated with stocks, making convertible bonds an attractive option for investors seeking both growth and income.
Similar to convertible bonds, these are preferred shares that can be converted into a specific number of the company's common shares, usually at the option of the shareholder. Convertible preferred stocks offer the benefits of higher dividend payments associated with preferred stocks, along with the opportunity to participate in the equity appreciation of the issuing company through conversion.
