For investors seeking momentum, Ultrashort 7-10 Year Treasury (PSI is probably on radar now. The fund just hit a 52-week high and is up nearly 14.1% from its 52-week low price of $20.50/share.

But 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 on where it might be headed.

PST in Focus

The fund looks to track two times the inverse exposure of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index. The underlying index includes publicly- issued U.S. Treasury securities that have a remaining maturity of greater than seven years and less than or equal to 10 years, and $300 million or more of outstanding face value, excluding amounts held by the Federal Reserve. The expense ratio of the fund is 0.95% (see all Inverse Bond ETFs here).

Why the Move?

The 10-year benchmark U.S. Treasury yield spiked to 3% on Apr 24 for the first time since January 2014, thanks to the dual prospects of a flurry of new government debt and faster Fed rate hikes. Since yields and bond prices have a negative relationship, Treasury prices dived lately and benefited this leveraged inverse bond ETF.

More Gains Ahead? 

It seems that the fund will stay strong in the near term given a positive weighted alpha of 10.67. As a result, there is still some promise for investors who want to ride on this surging ETF.

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