iShares Convertible Bond ETF
ICVT (NYSE)
The iShares Convertible Bond ETF (ICVT) has emerged as a top-performing bond ETF, delivering a robust one-year return of 21.30% as of January 2026. With a low expense ratio of just 0.20%, this ETF offers investors a strategic focus on convertible bonds, blending income generation with the potential for capital appreciation. Ideal for those seeking a balanced risk-return profile, ICVT is well-diversified across various sectors, making it a compelling choice for income-oriented investors.
Pros:
- Top-performing bond ETF
- Focus on convertible bonds
Cons:
- Lower yield compared to other investments
- Market volatility risk
The iShares Convertible Bond ETF (ICVT) may be suitable for investors looking for a blend of income and capital appreciation, particularly those who prioritize a diversified exposure to convertible bonds. With a modest dividend yield and a strong one-year performance, this ETF could appeal to income-oriented investors seeking to mitigate risk while still aiming for growth potential.
