Back to top

Image: Bigstock

Short-Term Bond ETF (NEAR) Hits New 52-Week High

Read MoreHide Full Article

For investors seeking momentum, BlackRock Short Maturity Bond ETF (NEAR - Free Report) is probably on radar. The fund just hit a 52-week high and is up 1.3% from its 52-week low price of $48.99/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:

NEAR In Focus

The fund looks to maximize current income through diversified exposure to short-term bonds. The effective duration of the fund is 0.47 years. Weighted average maturity is 1.09 years. The fund charges 25 bps in fees and yields 2.22% annually.

Why The Move?

The banking crisis in the United States has triggered a flight to safety. Short-term bonds are yielding more than the benchmark 10-year U.S. treasuries. So, investors are probably flocking to this kind of short-duration bonds for higher current income with lesser risks.

More Gains Ahead?

Currently, the fund has a positive weighted alpha of 0.50, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

BlackRock Short Duration Bond ETF (NEAR) - free report >>

Published in