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Short-Term Bond ETF Hits a 52-Week High
For investors seeking momentum, SPDR SSgA Ultra Short-Term Bond ETF (ULST - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 1.7% from its 52-week low of $39.59 per 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:
ULST in Focus
The SPDR SSgA Ultra Short-Term Bond ETF seeks to provide current income consistent with preservation of capital and daily liquidity through short duration high quality investments. The fund charges 20 bps in fees and yields 1.97% annually.
Why the Move?
The Fed has been hiking rates lately. This has boosted yields of short-term bonds. Plus, short-term bonds are less sensitive to interest rate increases.
More Gains Ahead?
The fund has a positive weighted alpha of 0.50. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.