Ultra-short-term bond (SGOV) ETF hits new 52-week high – July 28, 2022


For investors looking for dynamism, iShares 0-3 Month Treasury Bond ETF (SGOV Free Report) is probably on the radar. The fund just hit a 52-week high and is up 0.1% 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 short-term outlook to get a better idea of ​​its direction:

SGOV in brief

iShares 0-3 Month Treasury Bond ETF provides exposure to US Treasury Bonds with remaining maturities of three months or less. It has an effective duration of 0.08 years and an average maturity of 0.09 years. The product charges a 5 basis point annual fee (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 uncertainty and volatility. Soaring inflation and rising interest rates have raised fears of a recession, forcing investors to hoard cash now. As such, the appeal of cash-like ETFs has grown as investors seek to mitigate downside risk in the stock market. SGOV invests in very short-term bonds and looks compelling amid the current market turmoil.

More wins to come?

Currently, SGOV has a Zacks ETF #4 (sell) rating, indicating that this product may be in trouble. However, it could continue its strong performance given its weighted alpha of 0.12 and low 20-day volatility of 0.34%.


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