For investors looking for momentum, Invesco Fundamental Investment Grade Corporate Bond (PFIG Quick QuotePFIG - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 20.2% from its 52-week low price of $22.76/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

PFIG in Focus

This ETF seeks to provide total return that closely corresponds, before fees and expenses, to the RAFI Bonds US Investment Grade 1-10 Index. It has AUM of $62.8 million and charges 22 basis points in annual fees.

Why the Move?

The Federal Reserve has announced new initiatives to support the ailing U.S. economy. The central bank has pledged to make individual corporate bonds purchases under its Secondary Market Corporate Credit Facility (SMCCF), adding liquidity to the market. Notably, under the SMCCF emergency lending program that has a capacity of $250 billion, the Fed has already invested about $5.5 billion in ETFs that buy corporate bonds. The Fed has pledged to keep pumping in stimulus to support the economy and strengthen it. These factors are making funds like PFIG attractive investment options. Also, the coronavirus-induced global economic concerns might spur demand among investors.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 6.40, which gives cues of further rally.

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