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Treasury ETF (TLT) Hits New 52-Week High

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For investors seeking momentum, iShares 20+ Year Treasury Bond ETF (TLT - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 17.8% from its 52-week low price of $114.88/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 on where it might be headed:

TLT in Focus    

TLT targets the long end of the yield curve, holding 32 bonds in its basket. It has a weighted average maturity of 26.53 years and effective duration of 17.96 years. It is the most popular and liquid ETF in the Treasury space with AUM of over $8.1 billion and average daily volume of around 8.4 million shares. The product charges 15 bps in expense ratio and has 2.32% in 30-day SEC yield (see: all the Government Bond ETFs here).

Why the Move?

The Treasury corner of the fixed income world has been an area to watch lately as investors are flocking to safe havens once again amid spiraling woes. This is especially true as the resumption of the oil slide and the dollar rally, the Fed meeting this week and Brexit fears renewed worries about the health of the global economy, reversing the positive sentiments felt early last week. Additionally, uneven global economic growth, the U.S. election and geopolitical tensions are weighing heavily on the market.

More Gains Ahead?

Currently, TLT has a Zacks ETF Rank of 2 or ‘Buy’ rating with a High risk outlook, suggesting continued outperformance in the months ahead. Further, a high weighted alpha of 14.90% and a low 20-day volatility of 9.89% for the ETF show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.

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