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Ultra Short Duration Bond ETF (GSY) Hits New 52-Week High
For investors seeking momentum, Invesco Ultra Short Duration ETF (GSY - Free Report) is probably on radar. The fund just hit a 52-week high and is up 1.2% from its 52-week low price of $49.23/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
GSY in Focus
This ETF is active and does not track a benchmark. The Invesco Ultra Short Duration ETF is an actively managed exchange-traded fund that seeks to provide returns in excess of cash equivalents while also seeking to provide preservation of capital and daily liquidity. The fund charges 22 bps in annual fees.
Why the Move?
The short-term corner of the Treasury market has been an area to watch lately, given the current stock market volatility. The banking woes have made investors jittery, compelling them to hoard cash. As such, the appeal for cash-like ETFs has been on the rise as investors seek to mitigate the risk of a decline in the stock market. Moreover, the Fed has hiking short-term rates. As a result, short-term bonds are yielding more currently. This ultra-short-term bond ETFGSY yields 2.80% annually.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 0.40, which gives cues of further rally.