Higher-Yielding Convertible Bonds Can Offer a Lower-Risk Way to Play Stocks

Convertibles are off to a strong start to the year after a tough 2022.

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SPDR Bloomberg Convertible Securities

At around $68, the exchange-traded fund (Ticker: CWB) has returned 5.5% this month after falling 21% in 2022 (including dividends). The $4 billion ETF yielded 2%, in line with the yield of the $235 billion market leaning toward growth companies.