# Virtus Convertible Funds Trade Widely Apart

> Virtus convertible funds NCZ and NCV trade unusually far apart despite similar portfolios.
- Title: Virtus Convertible Funds Trade Widely Apart · Seekingalpha
- Summary: Virtus convertible funds NCZ and NCV trade unusually far apart despite similar portfolios. Virtus Convertible & Income Fund II (NCZ) and Virtus Convertible &…
- Keywords: virtus convertible, ncz, ncv, convertible funds, discount, portfolio, money, business, Virtus, Convertible, Funds, Trade
- Source: Seekingalpha — https://seekingalpha.com/article/4952903-ncz-to-ncv-the-virtus-convertible-twins-trade-unusually-far-apart
- Author: Stanford Chemist
- Published: 2026-10-08T20:32:15+00:00
- Read time: 1 min
- Topics: virtus convertible, ncz, ncv, convertible funds, discount, portfolio, money, business
## Virtus Convertible Funds Trade Widely Apart
Virtus Convertible & Income Fund II and Virtus Convertible & Income Fund hold nearly identical portfolios but trade at a 9.51% discount versus NCV's 12.13% discount.
## Discount Gap Exceeds Average
The discount gap between NCZ and NCV is about two standard deviations above their one-year average of roughly 0.5 points.
## High Correlation in Portfolio Moves
With a 0.998 correlation in daily NAV moves over the past year, rotating between the funds keeps essentially the same convertibles exposure at a lower valuation.
## Investor Strategy for Spread Profit
Advanced investors can pair a short NCZ position with a long NCV position to profit from the spread alone, net of borrow costs.
## Key takeaway

Virtus Convertible & Income Fund II (NCZ) and Virtus Convertible & Income Fund (NCV) trade at a 9.51% discount versus 12.13% discount, a gap two standard deviations above their one-year average.