“In fact, convertibles are negatively correlated to U.S. Treasuries and broad fixed income benchmarks such as the Barclays U.S. Aggregate,” said Mazza. “Adding U.S. convertible securities to a portfolio with traditional fixed income may increase risk-adjusted returns, improve the portfolio’s drawdown and decrease its interest rate risk.”

CWB has a 30-day SEC yield of 2.44% and an average yield to worst of 2.77%. The ETF holds 99 convertible issues.

SPDR Barclays Convertible Securities ETF

 

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