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


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.

Want key ETF information delivered straight to your inbox?

Zacks’ free fund newsletter will update you weekly on top news and analysis, as well as the top performing ETFs.

Get it for free >>

Click to get this free report

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

To read this article on Zacks.com, click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Comments are closed.