ICVT: new US Convertible Bond ETF by BlackRock

BlackRock, Inc. begun trading the iShares Convertible Bond ETF (BATS: ICVT) on Thursday, June 04, 2015.
Here is a synopsis of the new ETF:

 

FUND INFORMATION:

Symbol: ICVT Exchange: BATS
Name: iShares Convertible Bond ETF Net Expense Ratio: 0.35%

 

FUND OBJECTIVE:

The iShares Convertible Bond ETF seeks to track the investment results of the Barclays U.S. Convertible Cash Pay Bond > $250MM Index.

 

REFERENCE INDEX:

The Barclays U.S. Convertible Cash Pay Bond > $250MM Index is a subset of the Barclays U.S. Convertibles: Cash Pay Bonds Index, which is one of the 4 classes of the Barclays U.S. Convertibles Index (i.e., cash pay, zero coupon, preferred and mandatory convertible bonds) and measures the performance of the U.S. dollar-denominated convertibles market. The Index is market capitalization-weighted and consists of only cash pay convertible bonds. Cash pay convertible bonds allow the holder of the bond the option to convert into a pre-specified number of shares of the issuer’s common stock, but does not require conversion. The universe of securities that are eligible for inclusion in the Underlying Index includes U.S. dollar-denominated securities with maturities of 31 days or more and $250 million or more of outstanding face value issued by financials, industrials and utilities corporations. The securities may be investment-grade, high yield or non- rated. The Underlying Index is rebalanced on the last business day of each month.


Fund Top Consituents (06/04/15):

INTEL CORPORATION 4.18%
SUNEDISON INC 2.82%
TESLA MOTORS INC 2.70%
PRICELINE GROUP INC 2.66%
SANDISK CORPORATION 2.39%
MICROCHIP TECHNOLOGY INCORPORATED 2.26%
MYLAN INC 2.12%
MICRON TECHNOLOGY INC 1.92%
VERISIGN INC 1.91%
GILEAD SCIENCES INC 1.78%

 

Fund Sector Breakdown (06/04/15):

Technology 41.94%
Consumer Non-Cyclical 19.98%
Consumer Cyclical 11.02%
Other/Undefined 5.96%
Energy 5.37%
Reits 4.62%
Basic Industry 2.55%
Financial Other 2.52%
Insurance 2.46%
Cash and/or Derivatives 1.90%
Transportation 1.68%

 

Useful Links:
ICVT Home Page

 

 

Category: Bonds> US Bonds> US Convertible Bonds

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