For investors seeking momentum, iShares Short Treasury Bond ETF SHV is probably on radar. The fund just hit a 52-week high and is up 0.6% from its 52-week low price of $109.73/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 of where it might be headed:
SHV in Focus
The underlying ICE Short US Treasury Securities Index intends to assess U.S. Treasury issued debt. Only U.S. dollar denominated, fixed rate securities with minimum term to maturity greater than one month and less than or equal to one year are included. The product charges 15 bps in annual fees (see: all the Government Bond ETFs here).
Why the Move?
The short-term corner of the Treasury market has been an area to watch lately, given the current stock market turmoil. Banking woes and huge uncertainty over the Fed’s rate hike have made investors jittery, compelling them to hoard cash. As such, the appeal for cash-like ETFs has been on the rise as investors seek to mitigate the risk of a decline in the stock market.
More Gains Ahead?
Currently, SHV has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance given a positive weighted alpha of 0.30.
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