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TIPS ETF (TIP) Hits New 52-Week High

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For investors seeking momentum, iShares TIPS Bond ETF (TIP - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 5.8% from its 52-week low price of $107.53 per 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 on where it might be headed:

TIP in Focus

This fund provides exposure to U.S. TIPS, which are government bonds whose face value rises with inflation. It has a weighted maturity of 8.17 years and effective duration of 7.52 years. TIPS focuses on top-rated bonds with AAA credit ratings, suggesting no default risk. The product charges 19 bps in annual fees (see: all the Inflation-Protected Bond ETFs here).

Why the Move?

The Treasury Inflation-Protected Securities (TIPS) corner of the bond market has been an area to watch lately given that inflation is on rise. Renewed trade fight between the two biggest economies with a new tariff increase will boost U.S. inflation and could dampen economic growth.

More Gains Ahead?

It seems that TIP might remain strong given a weighted alpha of 3.20% and a lower 20-day volatility of 3.35%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

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