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A Bond ETF To Diminish Volatility And Boost Yields: (CWB)

FYI: Convertible bond exchange traded funds are a good way to reduce volatility in a fixed-income investment portfolio and generate some extra cash on the side.
“Equity investors looking to reduce their portfolio volatility and increase their yield may consider SPDR Barclays Convertible Securities ETF (NYSEArca: CWB),”
Regards,
Ted
http://www.etftrends.com/2014/11/a-bond-etf-to-diminish-volatility-and-boost-yields/

M* Snapshot Of CWB: http://etfs.morningstar.com/quote?t=CWB&region=usa&culture=en-US

Comments

  • edited November 2014
    The opening words about reducing volatility "in a fixed income ... portfolio" are misleading. Here's what M* says (accurately, imho) about CWB:

    "CWB is not a bond substitute, as its volatility is several times greater than that of a typical fixed-income fund."
  • edited November 2014
    From its early September high to its mid October intraday lows an over 10% decline. Not my idea of reducing volatility in fixed income land.
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