Ashkon Software



CWB - Convertible Secs Barclays Capital SPDR

Convertible Secs Barclays Capital SPDR logoThe SPDR Bloomberg Barclays Convertible Securities ETF (CWB) is an exchange-traded fund (ETF) that invests primarily in a diversified portfolio of convertible bonds. Convertible bonds are a type of hybrid security that combine the features of both stocks and bonds. They can be converted into a predetermined amount of the issuer's common stock, usually at the discretion of the bondholder.

CWB seeks to track the performance of the Bloomberg Barclays U.S. Convertible Bond >$500MM Index, which includes U.S. dollar-denominated convertible securities issued by U.S. and non-U.S. corporations with a market capitalization of $500 million or more. The index is market capitalization-weighted, with a 5% issuer cap and a 20% industry cap.

CWB's portfolio typically includes convertible bonds from companies in the technology, healthcare, and consumer discretionary sectors. As of March 23, 2023, the fund had a total net asset value (NAV) of approximately $8.33 billion and held 111 different securities. The top five holdings comprised approximately 9.6% of the fund's assets and included convertible bonds issued by Dell Technologies Inc., Tesla Inc., and Advanced Micro Devices Inc.

One of the benefits of investing in convertible bonds is that they offer the potential for higher returns than traditional fixed-income securities, as they provide the option to convert to equity if the underlying company performs well. However, they also typically come with a lower yield than non-convertible bonds to compensate for the added equity exposure.

Investors looking to add diversification to their fixed-income portfolio and potentially benefit from the potential equity upside of convertible bonds may consider CWB as a suitable investment option. However, as with all investments, it's important to conduct thorough research and analysis to determine if an investment aligns with one's investment objectives and risk tolerance.




Copyright © 2000-2023, Ashkon Software LLC
Privacy Policy | Refund Policy | Disclaimer