Convertible Bonds Offer a Smooth Ride

They have produced better gains than stocks with less risk. For most people, the best way to ride converts is with Vanguard’s terrific fund.

Looking for an investment that has returned more than stocks over the long haul but has done so with much less risk, and that also boasts juicy yields? Consider convertible bonds, aptly dubbed “equities with training wheels” by Howard Marks, who heads the firm that runs my favorite convertible bond fund.

Earn Dividends From Convertible Bonds

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Steven Goldberg
Contributing Columnist,
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or