Best Convertibles Funds

Convertible securities, both bonds and stocks, allow investors to convert securities into shares of stock, usually at a preset price. These securities thus act a bit like stocks (offering the potential for capital appreciation) and a bit like bonds (supplying some yield and ballast to a portfolio). Here we narrowed the list of funds and ETFs to those that also received a Gold Morningstar Medalist Rating by our analysts. The Medalist Rating is a forward-looking assessment of an investment strategy. The rating is on a five-tier scale running from Gold to Negative. Gold is Morningstar’s top recommendation, reserved for investments that are expected to add the most value within their category.