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.
CWB: A Hybrid With Attractive Upside Potential
Convertible securities blend traits of bonds and stocks. They are worth considering given the way they balance growth with income. CWB's sector allocation highlights its approach of mixing income with growth.
