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Virtus Diversified Income & Convertible Fund yields 7.76%, with tech-heavy convertible bonds offering income and downside protection.

Market News
17 Jul 2026
Seeking Alpha
View Source
Neutral
pluang ai news

The Virtus Diversified Income & Convertible Fund (ACV) offers a 7.76% yield primarily through convertible bonds focused on the technology sector. This strategy provides investors with downside protection compared to equities and higher income than common stocks, though it may underperform in strong bull markets. ACV's largest holdings differ from the S&P 500, reducing single-company risk but maintaining sector exposure. The fund trades at a slight discount to net asset value, covers distributions with realized gains, and remains financially strong, though it faces risks if AI-driven tech investments falter.

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