We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Short Treasury Bond ETF (SHV) Hits a New 52-Week High
Investors seeking momentum may have iShares Short Treasury Bond ETF (SHV - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of SHV are up approximately 0.3% from their 52-week low of $110.18/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
SHV in Focus
The fund reflects the performance of the ICE U.S. Treasury Short Bond Index. The fund has a weighted average maturity of 0.35 years and effective duration of 0.34 years. SHV charges 15 basis points in fee per year and has AUM of $17.3 billion (see all Government Bond ETFs here).
Why the move?
Of late, the fund has been performing well due to its lesser sensitivity to rise in rates. Investors should also note that yield on short-term Treasury bills outdoes U.S. inflation, meaning investors can now get real, inflation-adjusted return from cash for the first time in a decade, per Financial Times.
More Gains Ahead?
Though the fund has a Zacks Rank #4 (Sell), it has a positive weighted alpha of 0.20. So, SHV could gather some more gains as long as the trend is its friend.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>