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Treasury ETF (TLT) Hits New 52-Week High

Sweta Killa

For investors seeking momentum, iShares 20+ Year Treasury Bond ETF TLT is probably on radar now. The fund just hit a 52-week high and is up 14% from its 52-week low price of $111.90/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:

TLT in Focus    

TLT offers exposure to long-term U.S. Treasury bonds and holds 35 bonds in its basket. It has a weighted average maturity of 25.15 years and effective duration of 17.42 years. The product charges 15 bps in expense ratio and has 2.69% in 30-day SEC yield (see: all the Government Bond ETFs here).

Why the Move?

The Treasury corner of the fixed-income world has been an area to watch lately as investors are flocking to safe havens amid deepening trade dispute between the United States and China that has raised concerns about global economic growth. Additionally, Brexit tensions and bouts of negative news flow are weighing heavily on the market.

More Gains Ahead?

Currently, TLT has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, a high weighted alpha of 9% and a low 20-day volatility of 7.45% for the ETF show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.

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iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports
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