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Ultra Short-Term Treasury ETF (BIL) Hits New 52-Week High

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For investors seeking momentum, SPDR Bloomberg 13 Month T-Bill ETF (BIL - Free Report) is probably on the radar. The fund just hit a 52-week high of $91.58 from its 52-week low price of $91.37/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 of where it might be headed:

BIL in Focus

The underlying Bloomberg 1-3 Month U.S. Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. The product charges 14 bps in annual fees.

Why the Move?

The short-term corner of the Treasury market has been an area to watch lately, given the stock market turmoil. As such, the appeal for cash-like ETFs has been on the rise as investors seek to mitigate the risk of a decline in the stock market. BIL invests in ultra short-term bonds and look compelling in the current market turmoil.

More Gains Ahead?

The fund has a positive weighted alpha of 0.20. So, there is a decent outlook ahead for those who want to ride this surging ETF.

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