Not all fixed-income investors are destined to tumble when interest rates rise. In fact some bonds, actually thrive when rates move higher. Case and point: Convertible bonds and now investors have another convertibles exchange traded fund to consider.
First Trust, the sixth-largest U.S. issuer of ETFs, introduced the actively managed First Trust SSI Strategic Convertible Securities ETF (NASDAQ: FCVT) on Wednesday.
"During a shift in the economic climate, convertible securities may offer investors an attractive total return investment option with potentially meaningful participation in equity returns, current income, and a degree of principal protection," according to a statement issued by First Trust.
What Are Convertible Bonds?
Convertible bonds earn that moniker because they can be converted into shares of the issuer's ...
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