Interest Rate Hedge ETF (PFIX) Hits New 52-Week High
For investors seeking momentum, Simplify Interest Rate Hedge ETF PFIX is probably on radar. The fund just hit a 52-week high, and is up 84.3% from its 52-week low of $37.38 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
PFIX in Focus
This ETF is active and does not track a benchmark. The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for income. The fund charges 50 bps in fees.
Why the Move?
The interest rate hedge corner of the broad ETF world has been an area to watch lately, given the Fed rate hike momentum. The Fed Chair Jerome Powell raised interest rates by another 75 bps. This marked the third consecutive rate hike of 0.75% and pushed the benchmark interest rate to 3.0-3.25%, the highest level since 2008. Fed officials now expect the federal funds rate at a range of 4.25% to 4.5%, a full percentage point above the 3.25% to 3.5% projected in June to end 2022.
More Gains Ahead?
The fund has a positive weighted alpha of 77.20. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.
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Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports
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