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
Agency Bond ETF (AGZ) Hits New 52-Week High
For investors looking for momentum, iShares Agency Bond ETF (AGZ - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up roughly 5.2% from its 52-week low price of $109.81/share.
But does this ETF have more gains in store? Let’s take a look at the fund and its near-term outlook to gain insight into where it might be headed:
AGZ in Focus
The underlying Bloomberg Barclays U.S. Agency Bond Index is composed of short-term U.S. agency securities publicly issued by U.S. government sponsored agencies like Fannie Mae and Freddie Mac. The fund has a low-credit risk primarily because of its investment-grade focus. Owing to its low duration, the fund offers paltry yields and is inappropriate for yield-seeking investors. AGZ is charging 20 bps in fees.
Why the Move?
An intensifying US-China trade war with the imposition of 10% tariff on the remaining $300 billion of Chinese imports, effective Sep 1, has made investors jittery. Moreover, geopolitical tensions and a slowdown in the global economic growth are compelling investors to switch to safer options like fixed-income funds.
More Gains Ahead?
Given the uncertain market conditions, it is hard to get a handle on the fund’s future returns one way or another. However, it seems that AGZ might remain strong given a higher weighted alpha of 4.70.
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>>