For investors seeking momentum, SPDR Portfolio Short Term Corporate Bond ETF (SPSB Quick QuoteSPSB - Free Report) is probably on radar. The fund just hit a 52-week high and is up 3% from its 52-week low price of $29.98 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:

SPSB in Focus

The underlying Bloomberg Barclays U.S. 1-3 Year Corporate Bond Index includes publicly issued U.S. dollar denominated corporate issues that have a remaining maturity of greater than or equal to 1 year and less than 3 years and are rated investment grade. The fund charges 7 bps in fees and yields about 2.76% annually.

Why the Move?

Since markets have been volatile lately due to renewed U.S.-China trade tensions, bond yields have been hovering at lower levels. Also, there are talks that the Fed may cut rates in September. This is a great scenario for short-term corporate bond ETFs as these perform better in a low-rate environment.

More Gains Ahead?

The fund has a positive weighted alpha of 2.45. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer, especially if uncertainty prevails.

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