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TIPS ETF (TIP) Hits New 52-Week High

Sweta Killa
U.S. and Iranian officials said the latter downed a U.S. military drone near the Strait of Hormuz on Thursday. These sector ETFs and stocks are likely to gain.

For investors seeking momentum, iShares TIPS Bond ETF TIP is probably on radar now. The fund just hit a 52-week high, and is up 5.8% from its 52-week low price of $107.53 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 on where it might be headed:

TIP in Focus

This fund provides exposure to U.S. TIPS, which are government bonds whose face value rises with inflation. It has a weighted maturity of 8.17 years and effective duration of 7.52 years. TIPS focuses on top-rated bonds with AAA credit ratings, suggesting no default risk. The product charges 19 bps in annual fees (see: all the Inflation-Protected Bond ETFs here).

Why the Move?

The Treasury Inflation-Protected Securities (TIPS) corner of the bond market has been an area to watch lately given that inflation is on rise. Renewed trade fight between the two biggest economies with a new tariff increase will boost U.S. inflation and could dampen economic growth.

More Gains Ahead?

It seems that TIP might remain strong given a weighted alpha of 3.20% and a lower 20-day volatility of 3.35%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

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iShares TIPS Bond ETF (TIP): ETF Research Reports
 
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