Ultra-short-term bond (BIL) ETF hits new 52-week high

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For investors looking for dynamism, SPDR Bloomberg 1-3 Month T-Bill ETF BIL is probably on the radar. The fund just hit a 52-week high and is up 0.05% from its 52-week low of $100.01/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better idea of ​​its direction:

BIL in brief

SPDR Bloomberg 1-3 Month T-Bill ETF provides exposure to zero-coupon US Treasury securities with remaining maturities of 1-3 months. It has an effective duration and an average maturity of 0.07 years each. The product charges 14 basis points of annual fees (see: all government bond ETFs here).

Why the move?

The short-term corner of the Treasury market has been an area to watch lately, given the market turmoil. The S&P 500 is heading for the worst first half in 52 years, forcing investors to hoard cash. As such, the appeal of cash-like ETFs has grown as investors seek to mitigate the risk of a stock market decline. SGOV invests in very short-term bonds and looks compelling in the current market turmoil.

More wins to come?

Currently, BIL has a Zacks ETF Rank #3 (Hold), with a medium risk outlook. Therefore, it is difficult to have an idea of ​​its future returns one way or the other. However, it looks like USCI could remain strong given a weighted alpha of 0.01 and 20-day volatility of 0.26%. As a result, there is certainly still promise for risk-aggressive investors who want to take advantage of this booming ETF.

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SPDR Bloomberg 13 Month TBill ETF (BIL): ETF Research Reports

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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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