For investors seeking momentum, Schwab Intermediate-Term U.S. Treasury ETF (SCHR - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 6.4% from its 52-week low price of $51.31/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:
SCHR in Focus
The underlying Bloomberg Barclays U.S. 3-10 Year Treasury Bond Index includes all publicly issued U.S. Treasury securities that have a remaining maturity of greater than or equal to three years and less than 10 years, are rated investment grade, and $250 million or more of outstanding face value.
The weighted average maturity of the fund is 5.6 years and the effective duration is 5.2 years. The fund charges 6 bps in fees and yields 2.23% annually (see: all the Government Bond ETFs here).
Why the Move?
The bond markets are having a great time thanks to a dovish Fed and rising U.S.-China trade tensions, which have triggered a flight to safety. Short-term bonds are yielding more than the intermediate and benchmark 10-year U.S. treasuries.
As on May 31, 2019, the yield on five-year U.S. treasuries was 1.93%. way below that of the that of the one-month, two-month, three-month, six-month, one-year and two-year bonds. This clearly explains the rally in this intermediate bond fund.
More Gains Ahead?
Currently, SCHR has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, the fund has a positive weighted alpha of 5.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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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 investors seeking momentum, Schwab Intermediate-Term U.S. Treasury ETF (SCHR - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 6.4% from its 52-week low price of $51.31/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:
SCHR in Focus
The underlying Bloomberg Barclays U.S. 3-10 Year Treasury Bond Index includes all publicly issued U.S. Treasury securities that have a remaining maturity of greater than or equal to three years and less than 10 years, are rated investment grade, and $250 million or more of outstanding face value.
The weighted average maturity of the fund is 5.6 years and the effective duration is 5.2 years. The fund charges 6 bps in fees and yields 2.23% annually (see: all the Government Bond ETFs here).
Why the Move?
The bond markets are having a great time thanks to a dovish Fed and rising U.S.-China trade tensions, which have triggered a flight to safety. Short-term bonds are yielding more than the intermediate and benchmark 10-year U.S. treasuries.
As on May 31, 2019, the yield on five-year U.S. treasuries was 1.93%. way below that of the that of the one-month, two-month, three-month, six-month, one-year and two-year bonds. This clearly explains the rally in this intermediate bond fund.
More Gains Ahead?
Currently, SCHR has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, the fund has a positive weighted alpha of 5.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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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