For investors seeking momentum, Simplify Interest Rate Hedge ETF (PFIX Quick QuotePFIX - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 55% from its 52-week low price of $37.00/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:

PFIX in Focus

This ETF is active and does not track a benchmark. The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates and to benefit from market stress when fixed income volatility increases, while providing the income potential. The product charges 50 bps in annual fees (See: all Government Bond ETFs).

Why the Move?

The interest rate hedge corner of the broad ETF world has been an area to watch lately, given the less-dovish stance of the Fed. The Fed Chair Jerome Powell explained the central bank’s decision to cut interest rates at a slower pace next year than previously anticipated in December. The Fed now forecasts two rate cuts in 2025, down from the four anticipated in September. This has boosted the bond yields. The fund PFIX becomes more attractive with rising rate worries gripping the bond investing world.

More Gains Ahead?

Currently, PFIX might continue its strong performance in the near term, with a positive weighted alpha of 32.78, which gives cues to a further rally.