For investors seeking momentum, Invesco Fundamental High Yield Corporate Bond ETF (PHB - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 7.5% from its 52-week low of $17.45/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:
PHB in Focus
The underlying RAFI Bonds US High Yield 1-10 Index comprises U.S. dollar-denominated bonds. Consumer Discretionary (18.9%), Energy (15.5%), Industrials (11.6%) and Information Technology (10.3%) are the top four sectors of the fund. The fund charges 50 bps in fees and yields 4.18% annually (see all High-Yield/Junk Bond ETFs here).
Why the Move?
Though the U.S. economy is accused of slowdown, it is still one of the best positioned in the developed market pack. The Fed has also been dovish this year, which coupled with global growth concerns, has dragged down bond yields. This has boosted demand for high-income corporate bond funds like PHB.
More Gains Ahead?
The fund has a Zacks Rank #3 (Hold). Also, the fund has a positive weighted alpha of 1.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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