Investors looking for ETFs with rising momentum should begin to consider the SPDR Barclays Capital Convertible Bond ETF (CWB). This product just hit a new 52-week high of $47.36 today, and is now up 22.89% from its 52-week low price of $38.54 per share.
Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside CWB’s Rise
As mentioned earlier, CWB has now gained 22.89% from its 52-week low, which was hit back on February 11, 2016. The fund has now returned 3.75% over the past month, 8.43% over the past three months, and 6.38% in the past six months. Those returns compare to the benchmark S&P 500 index’s 1.12%, 9.86%, and 5.54% returns in the same periods, respectively.
CWB currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That’s because the shares have no short-term overhead resistance to bump up against.
A Look Under The Hood
SPDR Barclays Capital Convertible Bond ETF is a Fixed Income-focused product issued by State Street Global Advisors. Its expense ratio of 0.40% makes it the #2 cheapest ETF among 14 total funds in the Convertible Bond/Preferred Stock ETFs category.
CWB currently boasts $3.12B in assets under management (AUM), placing it #3 of 14 ETFs in its category, and #147 of 1922 total ETFs in the U.S. exchange traded universe.
The investment objective of the SPDR Barclays Capital Convertible Bond ETF is to provide investment results that correspond generally to the price and yield performance of an index that tracks United States convertible securities markets with outstanding issue sizes greater than $500 million. With the corporate bond market red hot right now, it’s not surprising that CWB is sitting on some major gains these days.
CWB SMART Grade: More Gains Ahead?
A SMART Grade of A suggests excellent future price growth potential, so it’s reasonable to expect even more gains ahead. Thus, CWB receives our highest approval.
For more information about this ETF, including full ratings, news, data, and more, please visit CWB’s ticker page.
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