Investors seeking momentum may have WisdomTree Floating Rate Treasury ETF (USFR Quick QuoteUSFR - Free Report) on radar now. The fund recently hit a new 52-week high.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

WisdomTree Floating Rate Treasury ETF (USFR Quick QuoteUSFR - Free Report)

The underlying Bloomberg U.S. Treasury Floating Rate Bond Index is a rules-based, market value-weighted index engineered to measure the performance of floating rate US Treasury bonds. The expense ratio of USFR is 0.15%.

Why The Move?

The year 2022 could be all about rising rate risks as the Fed is planning to hike rates to combat sky-high inflation. This has raised the appeal for floating rate bonds. Since the coupons of these bonds are adjusted periodically, they are less sensitive to an increase in rates compared with traditional bonds.

More Gains Ahead?

The ETF USFR has a positive weighted alpha of 0.10. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.