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TIPS ETF (SPIP) Hits New 52-Week High
For investors seeking momentum, SPDR Portfolio TIPS ETF (SPIP - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 6% from its 52-week low price of $30.08/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:
SPIP in Focus
This ETF seeks to hedge against the erosion of purchasing power due to inflation. It offers exposure to U.S. Treasury inflation-protected securities (TIPS), which are designed to provide inflation protection to investors. Holding 53 securities in its basket, it has an average duration of 8.46 years and an average maturity of 8.86 years. The product charges 12 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 inflation. Inflation has soared in the United States, with consumer prices increasing at the fastest pace in more than 30 years. The consumer price index rose 6.2% year over year in October, the highest since December 1990 and exceeded the 5.4% year-over-year rise in September. Inflation also topped 5% for the fifth straight month.
More Gains Ahead?
It seems that SPIP might remain strong given a weighted alpha of 4.46 and a 20-day volatility of 6.4%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.