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Ultra Short Duration Municipal ETF (FUMB) Hits New 52-Week High

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For investors looking for momentum, First Trust Ultra Short Duration Municipal ETF (FUMB - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 7.1% from its 52-week low price of $19.37/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

FUMB in Focus

The fund seeks to provide federally tax-exempt income consistent with capital preservation. The fund charges 35 basis points in fees and has an AUM of $53 million.

Why the Move?

The U.S. stimulus package, along with the Fed’s fiscal measures, has relaxed investor concerns regarding the liquidity, as municipal governments are spending in fulfilling essential health requirements in the wake of the coronavirus pandemic. The Federal Reserve announced new initiatives on Mar 23 to support the markets and combat the coronavirus pandemic. All these factors make investing in funds like FUMB more attractive.

More Gains Ahead?

It seems like the fund will remain strong with a positive weighted alpha of 1.17, which gives cues of further rally.

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