For investors seeking momentum, WisdomTree Negative Duration High Yield Bond Fund is probably on radar now. The fund just hit a 52-week high and is up nearly 11% from its 52-week low price of $20.26/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.

HYND in Focus         

The ETF looks to track the performance of the BofA Merrill Lynch 0-5 Year US High Yield Constrained, Negative Seven Duration Index. No holding accounts for more than 0.90% of the fund. The product charges 48 bps in net fees and yields 4.72% annually (see all High-Yield/Junk Bond ETFs here).

Why the Move?        

The U.S. economy is on a strong footing and the Fed is likely to enact its second rate hike next month, which is why bond yields have been steady in recent sessions. Investors have thus bet on bond ETFs that have negative duration. This would nullify the interest rate risks. Also, the fund HYND produces benchmark-beating yields, which could prove lucrative for investors.

More Gains Ahead? 

It seems that the fund will perform decently in the near term given a positive weighted alpha of 3.50. So, there is still some promise for investors who want to ride on this surging ETF.

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