The latest addition to PowerShares’ ETF lineup is a fund focusing on convertible bonds, a unique asset class that maintains characteristics of both fixed income and equity securities. The new PowerShares Convertible Securities Portfolio (CVRT) will seek to replicate the performance of the BofA Merrill Lynch All U.S. Convertibles Index, which serves as the benchmark for a number of convertible bond mutual funds [see the free Mutual Fund To ETF Conversion Tool]. That index is a broad measure of the U.S. convertible market, including both investment grade and non-investment grade convertible securities. Under The Hood Metric CVRT Average Coupon 3.88% Modified Duration 5.77 years Average Conversion Premium 25.86% Average Equity Market Cap $2.24 billion % Investment Grade 43.3% % Speculative Grade 24.3% % Not Rated 32.4% Source: PowerShares, as of 5-26-2011 The new convertible bond ETF has about 60 individual holdings, with the largest individual components being debt of Amgen, [...] Click here to read the original article on ETFdb.com. Related Posts: Bond ETFs: 12 Stops Along The Risk/Return Spectrum Five Bond ETFs Worth A Closer Look Convertible Bond ETF (CWB) Under The Microscope iShares Launches Muni Bond ETFs Ten Most Successful New ETFs Of 2009