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

For investors seeking momentum, iShares 03 Month Treasury Bond ETF SGOV is probably on radar. The fund just hit a 52-week high and is up 0.17% from its 52-week low price of $100.01/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:

SGOV in Focus

The iShares 03 Month Treasury Bond ETF seeks to track the investment results of the ICE 0-3 Month US Treasury Securities Index. The product charges 5 bps in annual fees.

Why the Move?

The short-term corner of the Treasury market has been an area to watch lately, given the stock market turmoil. 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. SGOV invests in ultra short-term bonds and look compelling in the current market turmoil.

More Gains Ahead?

The fund has a positive weighted alpha of 0.21 (per barchart.com), which gives cues of further rally.

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iShares 03 Month Treasury Bond ETF (SGOV): ETF Research Reports
 
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