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Ultra Short-Term Bond ETF (SGOV) Hits New 52-Week High
For investors seeking momentum, iShares 0-3 Month Treasury Bond ETF (SGOV - Free Report) is probably on radar. The fund just hit a 52-week high and is up 0.55% from its 52-week low price of $99.96/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:
SGOV in Focus
iShares 0-3 Month Treasury Bond ETF offers exposure to U.S. Treasury bonds with remaining maturities less than or equal to three months. It has an average maturity and an effective duration of 0.09 years each. iShares 0-3 Month Treasury Bond ETF charges 5 bps in annual fees (see: all the Government Bond ETFs here).
Why the Move?
The short-term corner of the Treasury market has been an area to watch lately, given the current stock market turmoil. The 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?
Currently, SGOV has a Zacks ETF Rank #3 (Hold), indicating that some pain might be in store for this product. However, it might continue its strong performance given its weighted alpha of 0.56 and a low 20-day volatility of 1.04%.