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TIPS ETF (STIP) Hits New 52-Week High
For investors seeking momentum, iShares 0-5 Year TIPS Bond ETF (STIP - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 3.5% from its 52-week low of $98.50 per share.
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:
STIP in Focus
iShares 0-5 Year TIPS Bond ETF offers exposure to short-term U.S. TIPS, which are government bonds whose face value rises with inflation. It charges 3 bps in fees per year (see: all the Inflation-Protected Bond ETFs here).
Why the Move
The TIPS corner of the bond market has been an area to watch lately as the new administration tariff trade talks will likely boost inflation. In such a scenario, investing in Treasury Inflation-Protected Securities (TIPS) ETFs, which offer shelter against rising inflation, would be prudent. These not only combat increasing prices but also protect income for the long term.
More Gains Ahead?
STIP has a weighted alpha of 3.52 and a 20-day volatility of 1.30%, which shows that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.