Ultra Short-Term Bond ETF (PULS) Hits New 52-Week High
For investors seeking momentum, PGIM Ultra Short Bond ETF PULS is probably on radar. The fund just hit a 52-week high and is up about 1% from its 52-week low price of $48.88/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:
PULS in Focus
PGIM Ultra Short Bond ETF is an actively managed fund that seeks total return through a combination of current income and capital appreciation, consistent with the preservation of capital. It has an effective duration of 0.1 years and an average maturity of 1.4 years. The product charges 15 bps in annual fees (see: all the Total Bond Market 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 over the Fed rate hike. The uncertain outlook of the Fed on whether it will adopt a slower rate hike policy or continue to keep raising rates for longer than expected, compelled investors to currently hoard cash. 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, PULS might continue its strong performance given its weighted alpha of 0.53 and a low 20-day volatility of 1.54%. There is definitely still some promise for investors, who want to ride on this surging ETF.
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PGIM Ultra Short Bond ETF (PULS): ETF Research Reports
