Ultra Short-Term Bond ETF (BIL) Hits New 52-Week High
For investors seeking momentum, SPDR Bloomberg 1-3 Month T-Bill ETF BIL is probably on radar. The fund just hit a 52-week high and is up 0.1% from its 52-week low price of $91.37/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 of where it might be headed:
BIL in Focus
SPDR Bloomberg 1-3 Month T-Bill ETF offers exposure to zero-coupon U.S. Treasury securities that have a remaining maturity of 1-3 months. It has an effective duration and average maturity of 0.09 years each. The product charges 14 bps in annual fees (see: all the Government Bond ETFs here).
Why the Move?
The short-term corner of the Treasury market has been an area to watch lately, given the return of volatility in the stock market. Renewed fears of the Federal Reserve’s interest rate outlook are weighing on the ongoing stock rally, compelling investors to hoard cash once again. As such, the appeal for cash-like ETFs has been on the rise as investors seek to mitigate the risk of a decline in the stock market.
More Gains Ahead?
Currently, BIL has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, it seems that USCI might remain strong given a weighted alpha of 0.10 and 20-day volatility of 0.44%. As a result, there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.
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SPDR Bloomberg 13 Month TBill ETF (BIL): ETF Research Reports
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