A.I.M. For Exchange Traded Funds

[OldAIMGuy]

Hi Lisa, Re: CHI vs CHY...................

I think that the "since inception" differential is really only the difference in when the two funds came to the market. These securities both hold convertible bonds that move both up and down with the market in general (not on a daily basis). So, the CHI fund was quite depressed in 2002 and then rebounded nicely in '03. CHY by comparison didn't have that "advantage" at its beginning.

For now, with comparable yields, I'd say that you'd be spending a lot less in the form of "premium" above the Net Asset Value in CHY than in CHI. So it would appear that the CHY has less "down side risk" since there's less premium in it for the same effective yield.

When CHY first came out, CHI was trading quite a bit more in the way of daily shares. So the "known" fund out traded the "unknown" for a while. This shows up in a difference in the price range of the two during the first year of them both being available. However as time has progressed, they now trade much more closely to each other than back in the beginning. This can be seen in a comparison graph such as:

http://stockcharts.com/webcgi/perf.html?CHI,chy

Set the X-axis to 252 days and then drag it along the whole time frame. CHI did better initially because of it being more popular but in recent times they move more in step.

Hope this helps,

Best regards, Tom