Convertible bonds are not often highly rated, but that does not mean investors are taking on significant credit risk with ETFs like CWB and ICVT. For example, nearly 20% of ICVT’s portfolio is rated BB and almost 23% of the new ETF’s holdings are rated BBB or A, according to issuer data. However, nearly 36% of ICVT’s holdings are not rated.
ICVT charges 0.35% per year, just below the 0.4% charged by CWB.
ICVT Maturity Breakdown
Chart Courtesy: iShares