With the S&P 500 down nearly nine percent year-to-date, it is not surprising that investors are favoring fixed income exchange traded funds. Nor is it surprising that bond ETFs with perceived correlations to equities, such as convertible and high-yield corporate funds, are out of favor compared to their U.S. government debt counterparts.
For example, the SPDR Barclays Convertible ETF (NYSE: CWB) is lower by more than 9 percent this year. A "convertible security" is a security - usually a bond or a preferred stock - that can be converted into a different security - typically shares of the company's common stock, according to the SEC.
CWB, which debuted nearly seven years ago, has some competitors, but with over $2.1 billion in assets under management, the fund is the undisputed king of convertible ...
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