For investors seeking momentum, the iShares Agency Bond ETF ((AGZ Quick QuoteAGZ - Free Report) ) is probably on the radar now. The fund just hit a 52-week high and is up 3.4% from its 52-week low price of $107.29 per share.

But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.

AGZ in Focus

It offers exposure to U.S. agency bonds, which are issued by government-sponsored enterprises such as Fannie Mae and Freddie Mac. The product charges 20 basis points (bps) in annual fees (See: All Government Bond ETFs here).

What Led to the Rise?

Rising uncertainty surrounding the U.S. government shutdown, frequent trade frictions between the United States and China, and fear of a market correction among some economists to hit the stock market soon have been boosting fixed-income instruments, such as bond ETFs, lately. A lower interest rate environment also boosts the market value of fixed-income securities like those held by AGZ. Cumulatively, these factors might have resulted in a fresh 52-week high for AGZ.

More Gains Ahead?

AGZ may continue its strong performance in the near term, with a positive weighted alpha of 2.30 (as per Barchart.com), which suggests a further rally.