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Ultra Short-Term Bond ETF (SHV) Hits New 52-Week High

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 0.5% 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

iShares Short Treasury Bond ETF provides exposure to U.S. Treasury bonds that mature in less than a year. It holds 28 securities in its basket, with an average maturity of 0.39 years and an effective duration of 0.38 years. 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. The banking woes and the 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), indicating that some pain might be in store for this product. However, it might continue its strong performance given its weighted alpha of 0.20 and a low 20-day volatility of 1.10%.

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iShares Short Treasury Bond ETF (SHV): ETF Research Reports

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Zacks Investment Research