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 1.69% 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 employs an active strategy and seeks to maximize current income through diversified exposure to short-term bonds. The fund has an effective duration of 0.40 years and a weighted average maturity of 1.09 years. NEAR has an exposure of 36.48% to BBB-rated bonds. The product charges 25 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.

More Gains Ahead?

Consequently, the fund might continue its strong performance given a positive weighted alpha of 1.