The State Street SPDR Bloomberg Convertible Securities ETF (CWB) has delivered impressive performance with a 20.09% return over the past year, making it an attractive option for investors looking to gain exposure to convertible securities. With a dividend yield of approximately 1.70%, CWB stands out for its consistent payouts while demonstrating lower volatility compared to the S&P 500, as indicated by its beta of 0.52. This strong performance, coupled with a 5-year return of 7.23%, reinforces its appeal for those seeking reliable investment opportunities.
Pros:
- Strong performer with a 16.25% one-year return
- Invests in convertible securities
Cons:
- Market volatility risk
- Potential for lower returns in a rising interest rate environment
2.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
3.Vanguard Total Bond Market ETF
BND (NYSE)
The Vanguard Total Bond Market ETF (BND) offers broad exposure to U.S. investment-grade bonds, making it a solid choice for diversification. With a low expense ratio of 0.03%, it provides an attractive dividend yield of 3.85% and has delivered a 1-year return of 4.29%. Although the fund has experienced volatility, it remains a reliable option for investors looking for a balanced bond portfolio.
Pros:
- Broad U.S. investment-grade bond exposure
- Low expense ratio of 0.03%
Cons:
- Underperformed cash over the past decade
- Vulnerable to price declines from interest rate increases
Final Words
As you consider your investment options for bond ETFs this February 2026, take time to compare the top performers and evaluate which aligns best with your financial goals. You can explore various funds, such as the iShares Convertible Bond ETF and Schwab U.S. Aggregate Bond ETF, to make informed decisions that suit your investment strategy.
Frequently Asked Questions
The iShares Convertible Bond ETF (ICVT) has been recognized for its impressive one-year return of 17.72%, focusing on convertible bonds that offer higher yield potential. This performance is supported by its investment strategy, which involves targeting fixed income securities within the convertible bonds market.
The iShares Convertible Bond ETF has a dividend yield of approximately 1.71%. It distributes dividends monthly, with the next payment being $0.2178.
The iShares Convertible Bond ETF has a market capitalization of $3.05 billion. This indicates the fund's size and the total value of its outstanding shares in the market.
Investing in bond ETFs involves several risks, including interest rate risk, credit risk, and market risk. Changes in interest rates can negatively impact bond prices, and credit risk arises if the bond issuer defaults on payments.
The Schwab U.S. Aggregate Bond ETF (SCHZ) is known for its cost-effectiveness and comprehensive coverage of the U.S. investment-grade bond market. This ETF invests at least 90% of its net assets in securities included in its benchmark index, making it a solid choice for broad bond exposure.
The current price of the iShares Convertible Bond ETF is $105.01. This price reflects the market's valuation of the fund based on its performance and the underlying assets it holds.
