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For investors looking for momentum, Vanguard Long-Term Treasury ETF VGLT is probably a suitable pick. The fund just hit a 52-week high — up roughly 33.1% from its 52-week low of $73.31/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
VGLT in Focus
The fund seeks to provide a high and sustainable level of current income and tracks the Bloomberg Barclays (LON:BARC) U.S. Long Treasury Bond Index. It charges 5 bps in fees and has an AUM of $2.32 billion (see all Government Bond ETFs here).
Why the Move?
For the first time, the benchmark 10-year U.S. Treasury note yield has fallen below 1% on Mar 3. The declining yields were a result of investors’ flight for safety to bonds, as concerns over slowing global economic growth due to the coronavirus outbreak started escalating. The rapidly-aggravating concerns are making high-yielding fixed-income investments attractive.
More Gains Ahead?
The fund has a Zacks Rank #3 (Hold). However, It seems like the fund will remain strong with a positive weighted alpha of 29.50, which gives cues of further rally.
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