State Street has launched the first convertible bond ETF.

The SPDR Barclays Capital Convertible Bond ETF (CWB) tracks the Barclays Capital U.S. Convertible Bond >$500MM Index.

156 issues are included in the Convertible Index and the Fund’s expense ratio is 0.40 percent.

Convertible bonds are bonds that can be exchanged, at the option of the holder, for a specific number of shares of the issuer’s preferred or common stock.