Still, you'll get exposure to the stock market's upside with less downside risk.Ī solid option is Calamos Convertible ( CCVIX, 1.14%), which seeks lower-volatility exposure to stocks. But having the option to convert to stock comes with a trade-off: you'll earn a little less in yield.
#Xtocc alternative plus#
Owning such bonds provides a one-two punch: steady income plus the potential to capture a portion of the stock's capital appreciation. Convertible BondsĬonvertible bonds generate income via interest payments, and they come with the option to convert them into the common shares of the issuing company's stock. In the past year, the fund has gained 39.5%, topping 90% of its peers. One of the largest commodity ETFs is Invesco DB Commodity Index Tracking Fund ( DBC, $20, expense ratio 0.85%), which uses futures contracts to track an index of 14 of the most heavily traded physical commodities. Metals (such as gold and silver), energy (such as oil and gas) and agriculture assets (such as wheat and farmland) are investments that don't rise and fall in tandem with stocks and bonds – and they perform well in times of rising inflation. The investments below might be more arcane – and risky – than the stocks and bonds that form the core of your portfolio, but they are accessible and provide the benefits of alternatives.
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