Calamos Investments has introduced the Calamos Convertible Equity Alternative ETF (CVRT), an actively managed fund providing exposure to US convertible securities. The ETF is listed on NYSE Arca and comes with an expense ratio of 0.69%. Convertible securities are hybrid debt instruments that can be converted into a predetermined number of an issuer’s common shares, combining both equity and fixed income characteristics. CVRT focuses on securities more sensitive to changes in their issuer’s stock price, offering greater equity upside potential compared to traditional broad market convertible strategies. Calamos, a pioneer in convertible securities investing, manages over $11 billion in related assets.
CVRT’s investment strategy includes quantitative and qualitative screens to identify eligible securities, including investment-grade and high-yield securities. The fund also actively manages portfolio-level characteristics and aims to maintain desired exposures through regular rebalancing. The launch follows renewed interest in convertibles and convertibles-based funds, with the SPDR Bloomberg Convertible Securities ETF gaining 6.6% year-to-date and attracting significant assets.