For investors seeking momentum, Vanguard Long-Term Treasury ETF (VGLT - Free Report) is probably on radar. The fund just hit a 52-week high and is up 21.4% from its 52-week low price of $68.97/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:
VGLT in Focus
TLT offers exposure to long-term U.S. Treasury bonds and holds 51 bonds in its basket. It has a weighted average maturity of 25.4 years and effective duration of 17.5 years. The product charges 7 bps in expense ratio and has 2.48% 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.
More Gains Ahead?
Currently, VGLT has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook, suggesting that the fund might not continue its outperformance in the months ahead. However, a high weighted alpha of 17.70 and a low 20-day volatility of 10.08% show that there is definitely still some promise for investors, who want to ride on this surging ETF.
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