The fund provides a good middle ground between pure equities or fixed-income exposure. Convertibles typically perform well when the equities markets strengthen, which occur during a healthy economic environment. The securities are also less volatile than stocks since they would pay their full principal at maturity like a regular bond. [A Good Time to Take the Convertibles ETF for a Spin]
“It could be a good investment for investors willing to give up some of the equity upside to protect downside and increase their yield,” Boccellari said.
SPDR Barclays Convertible Securities ETF
For more information on the fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.