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Short Treasury Bond ETF (SHV) Hits a New 52-Week High

Hologic (HOLX) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Investors seeking momentum may have iShares Short Treasury Bond ETF SHV on radar now. The fund recently hit a new 52-week high. Shares of SHV are up approximately 0.3% from their 52-week low of $110.18/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

SHV in Focus

The fund reflects the performance of the ICE U.S. Treasury Short Bond Index. The fund has a weighted average maturity of 0.35 years and effective duration of 0.34 years. SHV charges 15 basis points in fee per year and has AUM of $17.3 billion (see all Government Bond ETFs here).

Why the move?

Of late, the fund has been performing well due to its lesser sensitivity to rise in rates. Investors should also note that yield on short-term Treasury bills outdoes U.S. inflation, meaning investors can now get real, inflation-adjusted return from cash for the first time in a decade, per Financial Times.

More Gains Ahead?

Though the fund has a Zacks Rank #4 (Sell), it has a positive weighted alpha of 0.20. So, SHV could gather some more gains as long as the trend is its friend.

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ISHARS-SH TB (SHV): ETF Research Reports
 
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