For investors looking for dynamism, iShares 0-3 Month Treasury Bond ETF SGOV is probably a suitable choice. The fund just hit a 52-week high of $100.04/share from its 52-week low of $100.01/share.
Let’s take a look at the fund and its near-term outlook to get some insight into where it might go:
SGOV in brief
The iShares 0-3 Month Treasury Bond ETF seeks to track the investment results of an index composed of US Treasury bonds with residual maturities of three months or less. SGOV has an AUM of $1.99 billion and charges 3 basis points as an annual fee.
Why the move?
The crisis of the Russian-Ukrainian war, inflation at its highest level in 40 years and the Fed’s hawkish outlook on interest rates continue to scare investors. As tension between Russia and Ukraine persists, rising commodity prices and fears of further disruptions in global supply chain distribution could fuel higher inflation. Additionally, with the Federal Reserve taking an aggressive approach to raising rates, market participants are concerned that the US economy is sliding into stagflation due to high interest rates and high inflation. Wall Street also persistently bears the brunt of existing market ambiguity. This makes funds like SGOV an impressive investment option.
More wins to come?
It looks like the fund could stay strong going forward as it shows a positive weighted alpha.
The infrastructure stock boom will sweep America
A massive push to rebuild America’s crumbling infrastructure will soon be underway. It is bipartisan, urgent and inevitable. Billions will be spent. Fortunes will be made.
The only question is “Are you going to get into good stocks early when their growth potential is greatest?”
Zacks released a special report to help you do just that, and today it’s free. Discover 5 special companies looking to make the most of building and repairing roads, bridges and buildings, as well as transporting goods and transforming energy on an almost unimaginable scale.
Download FREE: How to Leverage Trillions of Dollars in Infrastructure Spending >>
Click to get this free report
iShares 03 Month Treasury Bond ETF (SGOV): ETF Research Reports
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.