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Bond ETF (FTSM) Hits New 52-Week High

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For investors seeking momentum, First Trust Enhanced Short Maturity ETF (FTSM - Free Report) is probably on radar. The fund just hit a 52-week high and is up 0.75% from its 52-week low price of $59.26/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:

FTSM in Focus

First Trust Enhanced Short Maturity ETF is an actively managed exchange-traded fund that invests in short-duration securities, which are primarily U.S. dollar-denominated, investment-grade securities. It invests across a broad range of asset classes to maintain diversification, and at least 80% of the fund's assets will be investment-grade securities at the time of purchase. First Trust Enhanced Short Maturity ETF has an average maturity of 0.52 years and an effective duration of 0.35 years. The product charges 35 bps in annual fees (see: all the Total Bond Market ETFs here).

Why the Move?

The short-term corner of the bond market has been an area to watch lately, given the current stock market turmoil. Banking woes have made investors jittery, compelling them to hoard cash. 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.

More Gains Ahead?

FTSM might continue its strong performance given its weighted alpha of 0.50 and a low 20-day volatility of 1.48%.

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