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iShares Short Duration Bond Active ETF (NEAR) - free report >>
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iShares Short Duration Bond Active ETF (NEAR) - free report >>
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Short-Term Bond ETF (NEAR) Hits New 52-Week High
For investors seeking momentum, BlackRock Short Maturity Bond ETF (NEAR - Free Report) is probably on radar. The fund just hit a 52-week high and is up 1.9% from its 52-week low price of $48.99/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:
NEAR in Focus
BlackRock Short Maturity Bond ETF is an actively managed fund that seeks to maximize current income through diversified exposure to short-term bonds. It has an average maturity of 1.04 years and an effective duration of 0.37 years each. BlackRock Short Maturity Bond ETF charges 25 bps in annual fees. The fund yields 3.74% annually.
Why the Move?
The short-term corner of the Treasury market has been an area to watch lately, given the Fed rate hike. Though the Fed stayed put in September, the central bank has signaled the possibility of one more rate hike this year. This has raised the appeal for short-term bond ETFs, which are less vulnerable to rising rates. As the duration or interest rate sensitivity is lower, these act as a cushion against rising rates. Moreover, the bond is yielding high.
More Gains Ahead?
Currently, NEAR might continue its strong performance given a positive weighted alpha of 1.40.