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Short-Term Treasury ETF (SPTS) Hits New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, SPDR Portfolio Short Term Treasury ETF SPTS is probably a suitable pick. The fund just hit a 52-week high, up roughly 2.7% from its 52-week low of $29.33/share.

But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

SPTS in Focus

The fund seeks to replicate investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg Barclays 1-3 Year U.S. Treasury Index. SPTS is charging 6 bps in fees. The fund has amassed $1.70 billion in AUM.

Why the Move?

Federal Reserve is expected to soon repurchase short-term US Treasury bonds to expand its balance sheet in order to avoid a cash crunch. Moreover, escalating Sino-US trade war tensions are worrying the investors. Recently, the Trump government added some of China’s top AI startups to its trade blacklist. Moreover, uncertainty in markets due to geopolitical tensions, slowdown in the global economy and Brexit woes are making investors jittery, adding to the lure of these funds.

More Gains Ahead?

Currently, SPTS has a Zacks Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns one way or the other. However, it seems SPTS might remain strong given a positive weighted alpha of 2.40.

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SPDR Portfolio Short Term Treasury ETF (SPTS): ETF Research Reports
 
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