Corporate Bond ETF (USIG) Hits a New 52-Week High

For investors seeking momentum, iShares Broad USD Investment Grade Corporate Bond ETF USIG is probably on radar. The fund just hit a 52-week high, and is up 24.7% from its 52-week low price of $49.15/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:

USIG in Focus

USIG offers exposure to a wide set of U.S. investment grade corporate bonds with average maturity of 11.48 years and effective duration of 8.13 years. The fund charges investors 6 basis points a year in fees (see: all the Investment Grade Corporate Bond ETFs here).

Why the Move?

The corporate bond market has been an area to watch lately given that the Federal Reserve is still buying corporate bonds and corporate debt-related ETFs. The move is the part of the pledge made by the central bank in March to support credit markets and bolster liquidity amid the coronavirus pandemic.

More Gains Ahead?

Currently, USIG has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting continued outperformance in the months ahead. Further, it seems that the fund might remain strong given a higher weighted alpha of 8.80 and a low 20-day volatility of 3.31%. As a result, there is definitely still some promise for investors, who want to ride on this surging ETF a little further.

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iShares Broad USD Investment Grade Corporate Bond ETF (USIG): ETF Research Reports
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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