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Mortgage-Backed ETF (JBBB) Hits New 52-Week High

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Janus B-BBB Clo ETF (JBBB - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 8.78% from its 52-week low price of $44.97/share.

Are more gains in store for this ETF? Let us 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.

JBBB in Focus

The fund employs an active management strategy with floating rate exposure to CLOs rated from B to BBB and seeks to deliver investors access to securities with low default risk, low correlations to traditional fixed-income asset classes and yield potential. The product charges 50 bps in annual fees and has a dividend yield of 7.82% (see: all Mortgage-Backed Security ETFs).

Why the Move?

This corner of the market has been an area to watch lately, given the fears over higher rates for a longer-than-expected period. The recent remarks of Federal Reserve Chair Jerome Powell highlighted a delay in rate cuts, driven by stubborn inflation levels. Current projections now suggest a rate cut might not occur until September at the earliest, with the Fed taking a little longer to enact the first rate cut.

More Gains Ahead?

JBBB might continue its strong performance in the near term, with a positive weighted alpha of 8.2, which gives cues of a further rally.

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