ACVT vs ICVT

ACVTCAdvent Convertible Bond ETF

ICVTAiShares Convertible Bond ETF

In short

ACVT —No data

ICVT Convertible bonds are corporate debt with a stock option attached. ICVT owns the plain-vanilla slice (cash-pay bonds, big issues only) by index, at 0.20% a year, the lowest fee among the handful of convertible ETFs on the market.

Stated mandate

ACVT —No data

ICVT The fund seeks to track an index of U.S. dollar-denominated convertible bonds with issue sizes above $250 million.

Why people hold it

ACVT —No data

• ICVT 0.20% a year, against a category median of 0.80%. The next-cheapest convertible ETF, CWB, charges 0.40%, and the active options in the group run 0.69% to 0.95%.
• Rules, not hunches: it follows the Bloomberg U.S. Convertible Cash Pay Bond >$250MM Index and has tracked it closely, with no manager discretion in the mix.ishares.com
• The index takes only cash-pay converts above $250 million in issue size, screening out zero-coupon, preferred and mandatory structures plus called and defaulted paper.sec.gov
• A multi-billion-dollar fund trading a few hundred bonds, running since 2015 and paying distributions monthly.

Worth knowing

ACVT —No data

• ICVT Converts move with the issuer's stock. The bond floor cushions, but this behaves more like an equity-sensitive hybrid than a core bond fund.sec.gov
• Convertible issuers are often unrated or below investment grade, so credit risk sits inside the portfolio alongside the rate risk.ishares.com
• Cash-pay only means no convertible preferreds or mandatories, so it is a clean core slice rather than the entire convertible market.sec.gov

Full ACVT profile⁠

Full ICVT profile⁠