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Total Bond Market ETF (VBND) Hits New 52-Week High

Sanghamitra Saha
Bull Of The Day: Anadarko (APC)

For investors seeking momentum, Vident Core US Bond Strategy ETF (VBND) is probably on radar now. The fund just hit a 52-week high, which is up roughly 4.6% from its 52-week low price of $46.27/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:

VBND in Focus

The fund looks to track the Vident Core US Bond Index, which utilizes principles to improve corporate bond exposures by screening for companies with strong leadership, governance and creditworthiness. It charges 43 bps in fees (see all Total Bond Market ETFs here).

Why the Move?

The dovish Fed in 2019 has put a check on the rise in bond yields. Not only in the United States, rates are likely to remain subdued globally given growth worries. This kind of environment normally benefits safer assets like fixed-income securities.

More Gains Ahead?

The fund has a positive weighted alpha of 1.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer. This is especially true given global growth worries are rife now.

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Vident Core U.S. Bond Strategy ETF (VBND): ETF Research Reports
 
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