Ultra-short-term bond (SGOV) ETF hits new high in 52 weeks


For investors looking for dynamism, iShares 0-3 Month Treasury Bond ETF SGOV 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 near-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 the risk of a stock market downturn. 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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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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