For investors seeking momentum, ProShares High Yield—Interest Rate Hedged ETF (HYHG - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 22.9% from its 52-week low price of $56.20/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:
HYHG in Focus
The fund looks to track high yield bonds and has an interest rate hedge built into its strategy as it takes a duration-matched short position in U.S. Treasury futures. The fund charges 50 bps in fees (see all High-Yield/Junk Bond ETFs here).
Why the Move?
As widely expected, the Fed raised benchmark interest rates by a modest 25 bps to the 0.50–0.75% band. The Fed expressed its confidence in the U.S. economy and forecast three rate hikes in 2017, up from two guided in September.
As a result, treasury yields were on an uphill ride, hurting bond prices. The yield on the benchmark 10-year Treasury note was 2.54% on December 14. This product offers a pretty high yield of 5.39%, indicating that this could be a safer bond and yield play for investors anxious about rising rates.
More Gains Ahead?
It seems that HYHG might continue with its strength given a positive weighted alpha of 13.10. Since a positive weighted alpha hints at more gains, there is definitely still some promise for investors who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, ProShares High Yield—Interest Rate Hedged ETF (HYHG - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 22.9% from its 52-week low price of $56.20/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:
HYHG in Focus
The fund looks to track high yield bonds and has an interest rate hedge built into its strategy as it takes a duration-matched short position in U.S. Treasury futures. The fund charges 50 bps in fees (see all High-Yield/Junk Bond ETFs here).
Why the Move?
As widely expected, the Fed raised benchmark interest rates by a modest 25 bps to the 0.50–0.75% band. The Fed expressed its confidence in the U.S. economy and forecast three rate hikes in 2017, up from two guided in September.
As a result, treasury yields were on an uphill ride, hurting bond prices. The yield on the benchmark 10-year Treasury note was 2.54% on December 14. This product offers a pretty high yield of 5.39%, indicating that this could be a safer bond and yield play for investors anxious about rising rates.
More Gains Ahead?
It seems that HYHG might continue with its strength given a positive weighted alpha of 13.10. Since a positive weighted alpha hints at more gains, there is definitely still some promise for investors who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on HYHG - FREE