Treasury bond ETF (SGOV) hits 52-week high

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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.

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iShares 03 Month Treasury Bond ETF (SGOV): ETF Research Reports

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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.

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