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Treasury Bond ETF (SGOV) Hits a 52-Week High

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For investors looking for momentum, iShares 0-3 Month Treasury Bond ETF (SGOV - Free Report) is probably a suitable pick. The fund just hit a 52-week high of $100.03/share from its 52-week low price of $100.01/share.

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

SGOV in Focus

The iShares 0-3 Month Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities less than or equal to three months. It has AUM of $790.2 million and charges 3 basis points in annual fees.

Why the Move?

Wall Street had a tough time on the last trading day of the holiday-shortened week. The slowdown in the market momentum has been brought about by the new omicron strain of coronavirus. The variant was first detected in South Africaand has numerous mutations (more than 30) to the spike protein (as stated in a CNBC article). The coronavirus outbreak is aggravating in some parts of Europe largely due to the cold weather conditions. Various measures are being taken to curtail the spread which can again impact the economic recovery achieved so far from the pandemic-led slump. This is making funds like SGOV an impressive investment option.

More Gains Ahead?

The fund carries a Zacks Rank #3 (Hold). It seems like the fund might remain strong going forward.


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