Don’t Overlook the Opportunity in Convertible Bond ETFs

Given the recent interest rate maneuvers from the Federal Reserve, many advisors and investors want to figure out which bond strategies could offer the most bang for their buck.

While some may be looking towards more traditional sectors, such as investment grade corporates or high yield bonds, it may be worth looking outside the box. One bond solution that may be flying under the radar right now is convertible bonds.

For the uninitiated, convertible bonds operate a little bit differently than a traditional bond does. Sure, these bonds are still issued by different companies. They potentially provide yield and long-term returns as one would expect from a fixed income security. However, convertible bonds stand out due to their capability for being converted into stocks, should the requisite share price climb high enough.

As a total package, convertible bonds may provide plenty of benefits. Along with diversifying one’s fixed income exposure, these bonds can help mitigate risk of default while gaining significant benefits from stock price appreciation.

CVRT: A Time-Tested Strategy With a Compelling Track Record

Advisors and investors hoping to gain access to the world of convertible bonds should look to do so through a fund with a proven track record. One such fund is the Calamos Convertible Equity Alternative ETF (CVRT). CVRT is an actively-managed fund from the team at Calamos Investments. It seeks to provide both capital appreciation and income through its distinct approach to convertible bond investment. Notably, Calamos has been investing in convertible bonds for well over 40 years now.

CVRT looks to stand out from the crowd via the kind of convertible bonds it tends to focus on. The majority of CVRT’s portfolio is intended for convertible bonds that display a higher degree of equity sensitivity. In this context, equity sensitivity refers to how much the bond prices move in response to the underlying stock price.

As mentioned before, CVRT is currently offering a rather impressive track record. As of October 31, 2025, the fund’s NAV has risen 35.75% over the last twelve months. These results showcase how the Calamos approach to convertible bonds has proven itself thus far, and may continue to do so in the months to come.

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Before investing, carefully consider the Fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.

An investment in the Fund is subject to risks, and you could lose money on your investment in the Fund. There can be no assurance that the Fund will achieve its investment objective. Your investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund can increase during times of significant market volatility. The Fund also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.

Authorized Participant Concentration Risk – Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund, and none of those Authorized Participants is obligated to engage in creation and/or redemption transactions. Convertible Securities Risk – The value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. Debt Securities Risk – Debt securities are subject to various risks, including interest rate risk, credit risk and default risk. Equity Securities Risk – The securities markets are volatile, and the market prices of the Fund’s securities may decline generally. Foreign Securities Risk – Risks associated with investing in foreign securities include fluctuations in the exchange rates of foreign currencies that may affect the US dollar value of a security, the possibility of substantial price volatility as a result of political and economic instability in the foreign country, less public information about issuers of securities, different securities regulation, different accounting, auditing and financial reporting standards and less liquidity than in US markets. High Yield Risk – High yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit and liquidity risks. New Fund Risk – The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision. Options Risk – The Fund’s ability to close out its position as a purchaser or seller of an over-the-counter or exchange-listed put or call option is dependent, in part, upon the liquidity of the option market. Non-Diversification Risk – The Fund is classified as “non-diversified” under the 1940 Act. As a result, the percentage of fund assets that may be invested in the securities of any one issuer is limited by the diversification requirements imposed by the Internal Revenue Code of 1986, as amended. Portfolio Turnover Risk – The portfolio managers may actively and frequently trade securities or other instruments in the Fund’s portfolio to carry out its investment strategies. Small and Mid-Sized Company Risk – Small and mid-sized company stocks have historically been subject to greater investment risk than large company stocks. Synthetic Convertible Instruments Risk – The value of a synthetic convertible instrument will respond differently to market fluctuations than a convertible security because a synthetic convertible instrument is composed of two or more separate securities, each with its own market value.

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