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Treasury ETF (SPTL) Hits New 52-Week High

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For investors seeking momentum, SPDR Portfolio Long Term Treasury ETF (SPTL - Free Report) is probably on radar now. The fund just hit a 52-week high and is up 14.7% from its 52-week low price of $32.29/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:

SPTL in Focus    

This fund offers exposure to long-term U.S. Treasury bonds and holds 56 bonds in its basket. It has average maturity of 24.84 years and an adjusted duration of 17.64 years. The product charges 6 bps in expense ratio and has 2.72% in 30-day SEC yield (see: all the Government Bond ETFs here).

Why the Move?

The Treasury corner of the fixed-income world has been an area to watch lately as investors are flocking to safe havens amid deepening trade dispute between the United States and China that has raised concerns about global economic growth. Additionally, Brexit tensions and bouts of negative news flow are weighing heavily on the market.

More Gains Ahead?

Currently, SPTL has a Zacks ETF Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns one way or the other. However, a high weighted alpha of 9.69% and a low 20-day volatility of 6.93% for the ETF show that there is still some promise for risk-aggressive investors, who want to ride on this surging ETF.

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