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TIPS ETF (PBTP) Hit a New 52-Week High
Invesco 0-5 Yr US TIPS ETF (PBTP - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 3.9% from its 52-week low price of $24.92/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.
PBTP in Focus
The underlying ICE BofAML 0-5 Year US Inflation-Linked Treasury Index measures the performance of US Treasury Inflation-Protected Securities with a remaining maturity of at least one month and less than five years. The product charges 7 bps in annual fees.
Why the Move?
The Treasury Inflation-Protected Securities (TIPS) corner of the bond market has been an area to watch lately, given the inflationary fears. Inflation picked up in January, fueled by higher grocery, gasoline and rent prices. The new administration’s tariff trade plans will likely boost inflation. In such a scenario, investing in 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?
The ETF STPZ might continue its strong performance in the near term, with a positive weighted alpha of 3.76, which gives cues of a further rally.