For those interested in finding out the painful areas of investing, iShares Short Treasury Bond ETF (SHV - Free Report) is probably on radar now. The fund just touched a 52-week low and SHV is down nearly 0.2% from its 52-week high price of $110.46/share.
But is more pain 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:
SHV in Focus
The fund gives exposure to U.S. Treasury bonds that mature in less than one year. The fund holds 25 stocks in its basket. It has a weighted average maturity of 0.44 years and an effective duration of 0.43 years. The fund charges 15 bps in fees (see all government bond ETFs here).
Why the Move?
Short-term U.S. government bonds have been watched closely of late thanks to the increasing odds of a rate hike in the Fed’s March meeting. This has pushed up the bond yields and lowered bond prices.
More Pain Ahead?
Currently, SHV has a Zacks ETF Rank of 3 (Hold) with a Medium risk outlook. So, it is tough to get a handle on the fund’s future momentum. However, the fund has a negative weighted alpha of 0.10. Since negative alpha hints at more pain, one can expect some more losses in the fund.
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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 those interested in finding out the painful areas of investing, iShares Short Treasury Bond ETF (SHV - Free Report) is probably on radar now. The fund just touched a 52-week low and SHV is down nearly 0.2% from its 52-week high price of $110.46/share.
But is more pain 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:
SHV in Focus
The fund gives exposure to U.S. Treasury bonds that mature in less than one year. The fund holds 25 stocks in its basket. It has a weighted average maturity of 0.44 years and an effective duration of 0.43 years. The fund charges 15 bps in fees (see all government bond ETFs here).
Why the Move?
Short-term U.S. government bonds have been watched closely of late thanks to the increasing odds of a rate hike in the Fed’s March meeting. This has pushed up the bond yields and lowered bond prices.
More Pain Ahead?
Currently, SHV has a Zacks ETF Rank of 3 (Hold) with a Medium risk outlook. So, it is tough to get a handle on the fund’s future momentum. However, the fund has a negative weighted alpha of 0.10. Since negative alpha hints at more pain, one can expect some more losses in the fund.
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 >>
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