Today, the editor has compiled relevant knowledge about Boshi Convertible Bond ETF for everyone. I hope it will be helpful to everyone. If you have different opinions, please criticize and correct me.

It is an exchange-traded open-end index fund based on a convertible bond index.

Convertible bonds refer to the company giving investors the option to convert the bonds into stocks under certain conditions when issuing bonds.

The main investment object is the convertible bond market, and asset allocation is achieved by tracking the convertible bond index.

The convertible bond market is a subdivision of the bond market. It has both the fixed-income characteristics of bonds and the variability characteristics of stocks, so it has better defensive performance when the market is volatile.

The investment strategy of the fund is passive management, that is to say, the fund's investment portfolio composition is the same as or similar to the convertible bond index, and no active stock timing or market prediction is performed.

The advantages of this passive management are low cost, risk diversification and transparency.

Fund managers only need to control the tracking error to minimize the difference between the fund's net value and the index's net value.

The advantage is that it not only has the income characteristics of convertible bonds, but also has the market liquidity and trading flexibility of ETFs, allowing investors to invest in the bond market by buying or selling ETF shares.

The investment risks mainly come from market risk and credit risk.

Market risk refers to the impact of market fluctuations on the net value of the fund; credit risk refers to the risk of default by the convertible bond issuing company.

In order to reduce credit risk, a diversified investment strategy is adopted, that is, the bonds of multiple convertible bond-issuing companies are allocated in the investment portfolio to achieve the effect of diversified investment.

Some risk control measures have also been adopted, such as setting a lower limit for the net value of fund shares and controlling the credit rating of tradable securities.

It is an ETF product with convertible bond index as the investment target. It has the advantages of low cost, risk dispersion and high transparency.

Investors can invest in the convertible bond market by buying this fund, but they need to pay attention to the impact of market risk and credit risk on investment.