It is no coincidence that as the equities that are linked to the top convertible bond positions in these ETFs have taken a drubbing recently, that the values of the convertible bonds have plummeted as well based on the nature of the optionality of the bonds themselves, and potential to exchange into shares of common or preferred stock.
Still, convertible bond portfolios appeal to many portfolio managers because they allow for participation in upside in bull market cycles while providing downside protection that does not exist in owning straight equities in bear market cycles.
SPDR Convertible Bond
iShares Barclays 20+ Year Treasury
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