Treasury ETF (SHY) Hits New 52-Week High
For investors seeking momentum, iShares 1-3 Year Treasury Bond ETF SHY is probably on radar now. The fund just hit a 52-week high, and is up 2.1% from its 52-week low price of $82.83/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:
SHY in Focus
SHY targets the short end of the yield curve, holding 75 bonds in its basket. It has a weighted average maturity of 1.92 years and effective duration of 1.87 years. It is a popular and liquid ETF in the Treasury space with AUM of $21 billion and average daily volume of around 3.5 million shares. The product charges 15 bps in annual fees and has 2.09% 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 given a decline in yields. Escalating trade war tensions have raised global growth worries, thereby leading investors’ to safety in the bond market. Additionally, Fed’s cautious approach is also supporting the rally.
More Gains Ahead?
Currently, SHY has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook, Therefore, it is hard to get a handle on its future returns one way or the other. However, a low weighted alpha of 1.90% and a low 20-day volatility of 1.10% for the ETF show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Click to get this free report
iShares 1-3 Year Treasury Bond ETF (SHY): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report