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Treasury Bond ETF (SGOV) Hits a 52-Week High

For investors looking for momentum, iShares 0-3 Month Treasury Bond ETF SGOV is probably a suitable pick. The fund just hit a 52-week high of $100.04/SHARE from its 52-week low price of $100.01/SHARE.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

SGOV in Focus

The iShares 0-3 Month Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities less than or equal to three months. SGOV has AUM of $1.99 billion and charges 3 basis points as annual fees.

Why the Move?

The Russia-Ukraine war crisis, inflation at a 40-year high and the Fed’s hawkish outlook for the interest rate continue to spook investors. As the Russia-Ukraine tension persists, rising commodity prices and fears of further disruptions in global supply-chain distributions might fuel higher inflation. Also, as the Federal Reserve takes an aggressive approach to increasing the rates, market participants are worrying about the U.S. economy slipping into stagflation due to high interest rates and steep inflation. Wall Street is also persistently bearing the brunt of the existing market ambiguity. This is making funds like SGOV an impressive investment option.

More Gains Ahead?

It seems like the fund might remain strong going forward as it carries a positive weighted alpha.

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iShares 03 Month Treasury Bond ETF (SGOV): ETF Research Reports
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