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Fidelity Low Duration Bond Factor ETF (FLDR) - free report >>
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Fidelity Low Duration Bond Factor ETF (FLDR) - free report >>
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Low Duration Bond ETF (FLDR) Hit a 52-Week High
Fidelity Low Duration Bond Factor ETF (FLDR - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 2.31% from its 52-week low price of $49.30/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.
FLDR in Focus
The underlying Fidelity Low Duration Investment Grade Factor Index is designed to optimize the balance of interest rate risk and credit risk such that both returns and risk measures may be improved relative to traditional U.S. investment grade floating rate note indices. The product charges 15 bps in annual fees and yields 5.59% annually.
Why the Move?
The Fed might cut rates in September due to the cooling in inflation reading as well as in the labor market data. As there is a chance of a decline in interest rates in the front end of the yield curve, low-duration bond ETF soared.
More Gains Ahead?
The ETF FLDR might continue its decent performance in the near term, with a positive weighted alpha of 0.94, which gives cues of a further rally.