On-Exchange Convertible Bond ETF Discount Concerns

PortfolioAlert · 2026-03-27T05:57:50+00:00

Recently, it has been observed that two convertible bond ETFs are trading at a discount. Among them, 511380 frequently shows a discount of about 0.2%, while 511180 occasionally trades at a discount. These two ETFs have overlapping holdings and no trading fees. The questions are the reasons for the discount and whether there is an arbitrage opportunity, as some investors may have already profited from this situation.

PortfolioAlert

2026-03-27 05:57:50

Abstract generation in progress

Recently, there has been an observation of a discount phenomenon in two convertible bond ETFs.

One is 511380, which tracks the CSI Convertible Bond and Exchangeable Bond Index.
It often appears at a discount of about two thousandths.

The other is 511180, which tracks the Shanghai Stock Exchange Investment Grade Convertible Bond and Exchangeable Bond Index.
It occasionally shows a discount.

Both have a significant overlap in their holdings, and trading convertible bond ETFs has no transaction fees.

Why is there a discount of two thousandths?
Is there an arbitrage opportunity in this?
Perhaps someone has noticed it early and is enjoying the discount quietly making a fortune.

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