For investors seeking momentum, Invesco Ultra Short Duration ETF (GSY Quick QuoteGSY - Free Report) is probably on radar. The fund just hit a 52-week high and is up 1.23% from its 52-week low price of $49.29/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:

GSY in Focus

This ETF is active and does not track a benchmark. The Invesco Ultra Short Duration ETF is an actively managed exchange-traded fund that seeks to provide returns in excess of cash equivalents while also seeking to provide preservation of capital and daily liquidity. The fund charges 22 bps in fees and yields 4.37% annually.

United States is the top holding of the fund with about 67.28% exposure, followed by Canada (9.03%). Financials (44.50%), Utilities (6.87%) and Consumer Discretionary (6.21%) are the top three sectors of the fund.

Why the Move?

The short-term corner of the Treasury market has been an area to watch lately. Though the Fed stayed put in September and November, rates remain quite high at the front end of the yield curve. 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. Moreover, the bond is yielding high.

More Gains Ahead?

The fund GSY might continue its strong performance given a positive weighted alpha of 1.00.