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CVD.TO - iShares Convertible Bond Index ETF

CVD is a Canadian convertible-bond sleeve that holds the small domestic convertibles market, pairing coupon income with embedded equity optionality rather than behaving like a broad aggregate-bond fund.

Alpha Efficiency:CAlpha Efficiency grades how much return this ETF generates above the risk-free rate, independent of the equity market. SPY sets the B baseline. A higher grade means more return per unit of non-equity risk. CVD.TO tracks Canadian convertible bonds, combining corporate-bond carry with issuer-specific equity optionality. It is scored as a fixed-income return source rather than broad market beta.

CVD total return

Range
+5.07%
Total return (1Y)
CVD.TO

Total return (Yahoo adjusted close—dividends and splits per Yahoo), normalized to $10,000 at first available trade date. Educational only.

Strategy

CVD tracks the FTSE Canada Convertible Bond Index, holding a concentrated pool of Canadian-dollar convertible bonds. Convertibles are corporate debt with an option to convert into the issuer's equity, so they can participate in an issuer's upside while retaining a claim ahead of common equity. That hybrid payoff is why CVD can diversify a bond alternative portfolio, but it is still exposed to corporate credit and equity stress.

The portfolio had 21 holdings and an effective duration near one year in late August 2026. The short duration limits sensitivity to broad rate moves, but it does not eliminate downside: a concentrated issuer market, widening credit spreads, and a falling share price can all hurt at once. The monthly distribution should be viewed as portfolio income, not as a guaranteed yield.

Manager and Issuer Pedigree

BlackRock Asset Management Canada Limited manages CVD on the iShares platform, with BlackRock Institutional Trust Company, N.A. as sub-advisor. The fund launched in 2011 and gives Canadian investors listed access to an otherwise thin, dealer-driven convertible-bond market.

This is a rules-based index ETF, not an active credit mandate. The FTSE Canada Convertible Bond Index applies issuer and industry limits, but a 21-security portfolio still carries meaningful issuer concentration. The low headline duration should not be confused with cash-like risk when the underlying companies face a credit or equity shock.

Outperformance

Outperforms when credit remains stable and the equity option appreciates: coupon income carries the position while improving issuer share prices make the conversion feature more valuable.

Underperforms when credit spreads widen and equity optionality deflates: a risk-off tape can pressure both the bond claim and the embedded equity upside at once. Favorable tape: stable corporate credit with improving issuer fundamentals. Hostile tape: stressed corporate credit with falling issuer equities.

Top Canadian portfolios that hold CVD

PortfolioCategoryPortfolio ratingAllocation
DividendsRetirementB+10%
Bond AlternativeRetirementB15%

Official ETF page

Read the official ETF page for current NAV, holdings, and documents: iShares Canada (CVD).

Beta and MER may not be accurate.
Educational content only; not investment advice. Past performance does not guarantee future results.