For investors seeking momentum, Ishares 0-3 Month Treasury Bond ETF SGOV is probably on the radar. The fund just hit a 52-week high and is up 0.73% from its 52-week low price of $99.96/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:

SGOV in Focus

The underlying ICE 0-3 Month US Treasury Securities Index comprises U.S. Treasury bonds with remaining maturities less than or equal to three months. The fund has an average maturity and an effective duration of 0.09 years each. The product charges 7 bps in annual fees (See: all Government Bond ETFs).

Why the Move?

The short-term corner of the Treasury market has been an area to watch lately, given the current stock market uncertainty. The growing likelihood of the Fed maintaining a hawkish stance for an extended duration and volatile markets are making cash-like ETFs more appealing to investors. As investors aim to reduce their exposure to potential stock market downturns, money-market ETFs tend to gain.

More Gains Ahead?

 

Currently, SGOV has a Zacks ETF Rank #3 (Hold), indicating that some pain might be in store for this product. However, it might continue its strong performance given a positive weighted alpha of 0.56, which gives cues to a further rally.

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iShares 0-3 Month Treasury Bond ETF (SGOV): ETF Research Reports

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