For investors seeking momentum, Vanguard Short-Term Inflation-Protected Securities ETF (VTIP Quick QuoteVTIP - Free Report) is probably on radar. The fund just hit a 52-week high and is up 6% from its 52-week low price of $49.68/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:

VTIP in Focus

This ETF offers exposure to TIPS that have remaining maturity of less than five years by tracking the Bloomberg Barclays U.S. TIPS 0-5 Year Index. Holding 19 securities in its basket, it has an average duration of 2.8 years and an average maturity of 2.8 years. The product charges 5 basis points in annual fees (see: all the Inflation-Protected Bond ETFs).

Why the Move?

The TIPS segment of the broad U.S. stock market has been an area to watch lately given the rising inflationary expectations. U.S. consumer prices climbed the highest in April since 2009 while producer prices also expanded the most in a decade. Inflation is expected to rise further given the surge in prices of raw materials such as copper and lumber.

More Gains Ahead?

It seems that VTIP might remain strong given a weighted alpha of 5.55 and a 20-day volatility of 1.7%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.

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