For investors seeking momentum, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund TDTT is probably on the radar. The fund just hit a 52-week high and has risen 5.5% from its 52-week low of $22.92 per share.
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 of where it might be headed:
TDTT in Focus
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund is suitable for investors seeking the inflation-hedging attributes of TIPS with targeted duration exposure. It tracks the iBoxx 3-Year Target Duration TIPS Index and charges 19 bps in fees per year (see: all the Inflation-Protected Bond ETFs here).
Why the Move
The Treasury Inflation-Protected Securities (TIPS) corner of the bond market has been an area to watch lately, given inflationary fears. Inflation picked up in January, fueled by higher grocery, gasoline and rent prices. The new administration’s tariff trade plans will further boost inflation. In such a scenario, investing in TIPS ETFs, which offer shelter against rising inflation, would be prudent. These not only combat increasing prices but also protect income for the long term.
More Gains Ahead?
TDTT has a weighted alpha of 2.82 and a 20-day volatility of 2.26%, which shows that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
