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Treasury ETF (IEF) Hits New 52-Week High

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For investors seeking momentum, iShares 7-10 Year Treasury Bond ETF (IEF - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up about 14% from its 52-week low price of $104.57/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:

IEF in Focus    

IEF offers diversified exposure to the intermediate-term U.S. Treasury bonds and holds 16 bonds in its basket. It has an average maturity of 8.53 years and effective duration of 7.68 years. The product charges 15 basis points in annual fees (see: all the Government Bond ETFs here).

Why the Move?

The Treasury corner of the fixed-income world has been an area to watch lately as bond yields are tumbling. The rapidly spreading coronavirus has made investors jittery, raising the appeal of safe haven investments. Also, the central banks across the globe are enacting financial stimulus to prop up the virus-infected economy. The Federal Reserve announced an emergency rate cut of half-percentage point to the range of 1.00-1.25%.

More Gains Ahead?     

Currently, IEF has a Zacks ETF Rank #2 (Buy) with a High risk outlook suggesting that the outperformance could continue in the months ahead. Further, a high weighted alpha of 15.00 and a low 20-day volatility of 6.47% for the ETF show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.

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