For investors seeking momentum, BlackRock Short Maturity Bond ETF (NEAR Quick QuoteNEAR - Free Report) is probably on radar. The fund just hit a 52-week high and is up 1.6% 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

BlackRock Short Maturity Bond ETF is an actively managed fund that seeks to maximize current income through diversified exposure to short-term bonds. It has an average maturity of 1.11 years and an effective duration of 0.43 years each. BlackRock Short Maturity Bond ETF charges 25 bps in annual fees (see: aall the Investment-Grade Corporate Bond ETFs here).

Why the Move?

The short-term corner of the Treasury market has been an area to watch lately, given the Fed rate hike. The Fed, as widely expected, raised interest rates by a quarter-percentage point to the highest level since March 2001 in this week’s meeting and signaled the possibility of further increases ahead. This has raised the appeal for short-term bond ETFs, which are less vulnerable to rising rates. As the duration or interest rate sensitivity is lower, these act as a cushion against rising rates.

More Gains Ahead?

Currently, NEAR might continue its strong performance given its weighted alpha of 1.07 and a low 20-day volatility of 1.38%.