Scared to Tackle Equities? How About a Convertible Bond ETF?

Share This Article
April 27, 2009 1:30pm NYSE:CWB

etf-newsFor wary and weary investors who find themselves a bit skittish to re-enter the markets, there’s a new exchange traded fund (ETF) that straddles the line between stocks and bonds.

A convertible bond is a hybrid tool for investors that offers exposure to both stocks and bonds and pays investors a coupon smaller than a comparable bond, but gives the investor the option to convert the unit into a stock at a later date if they wish, Tom Anderson, State Street Global Advisor’s head of research and strategy, told us.

State Street recently launched its first-to-market convertible bond ETF, SPDR Barclays Capital Convertible Bond ETF (CWB), just in time for this area of the market to experience a resurgence. These bonds, which have been around since the 1970s, are seeing renewed popularity for two reasons. One is their hybrid status. The other, Anderson says, is that “a lot of investors aren’t ready to get into stocks yet – this gives them a middle ground.”

Full Story:  http://www.nasdaq.com/newscontent/20090427/scared-to-tackle-equities-how-about-a-convertible-bond-etf.aspx?storyid=8923



9 "MUST OWN" Growth Stocks For 2021

Read Next



Free Investing Ideas Newsletter!

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

Most Popular



7 Best ETFs for the NEXT Bull Market

Explore More from ETFDailyNews.com

Free Investment Newsletter

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories