For investors seeking momentum, Invesco BulletShares 2023 Corporate Bond ETF is probably on radar. The fund just hit a 52-week high and is up 2.01% from its 52-week low price of $20.82/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:

BSCN in Focus

The underlying Nasdaq Bulletshares USD Corporate Bond 2023 Index represents the performance of a held-to-maturity portfolio of U.S. dollar-denominated, investment-grade corporate bonds with effective maturities in 2023. It has an average maturity of 0.17 years and an effective duration of 0.16 years. The product charges 10 bps in annual fees (See: all 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 a hawkish Fed. As the duration or interest rate sensitivity is lower, these act as a cushion against rising rates. With chances of the Fed keeping the rates high, this makes the fund more attractive, raising the appeal for short-term bonds. With inflation still above the Fed’s target of 2%, many economists believe that the interest rates will remain elevated till next year. Short-term bonds have low interest rate sensitivity (Read: Rates to Remain Higher for Longer? ETFs to Benefit).

More Gains Ahead?

Currently, the fund has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance given a positive weighted alpha of 1.30.