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Interest Rate Hedge ETF (PFIX) Hits New 52-Week High

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For investors seeking momentum, Simplify Interest Rate Hedge ETF (PFIX - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 63% from its 52-week low of $37.00 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: 

PFIX in Focus

Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates and to benefit from market stress when fixed income volatility increases. PFIX charges 50 bps in fees per year (see: all the Government Bond ETFs here).

Why the Move

The interest rate hedge corner of the fixed-income market has been an area to watch lately due to a rise in yields. The 10-year Treasury yields jumped to a one-month high, topping 4.5%, driven by easing tariff fears. The United States has agreed to temporarily slash tariffs on Chinese goods from 145% to 30%, while China will lower its retaliatory duties on U.S. goods from 125% to 10%. The temporary reduction in rates will run for 90 days.

More Gains Ahead?

PFIX has a weighted alpha of 32.2 and a 20-day volatility of 42.1%, which shows that there is still some promise for investors who want to ride on this surging ETF.


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