For investors seeking momentum, iShares Short-Term Corporate Bond ETF IGSB is probably on radar now. The fund just hit a 52-week high, which is up roughly 3.6% from its 52-week low price of $50.59/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 on where it might be headed:
IGSB in Focus
The fund looks to track the The ICE (NYSE:ICE) BofAML 1-5 Year US Corporate Index, which measures the performance of investment-grade corporate bonds that have a remaining maturity of greater than or equal to one year and less than five years and have $250 million or more of outstanding face value. It charges 6 bps in fees (see all Investment Grade Corporate Bond ETFs here).
Why the Move?
The dovish Fed in 2019 has put a check on the rise on bond yields. This in turn favored bond investing altogether. This corporate bond fund IGSB yields about 3.57%, which is pretty lucrative at the environment. Also, the fund has low sensitivity to interest rates. All these factors explain the recent rally in this bond ETF.
More Gains Ahead?
The fund has a Zacks Rank #4 (Sell). Still, the fund has a positive weighted alpha of 1.40, which hints at more gains. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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iShares Short-Term Corporate Bond ETF (IGSB): ETF Research Reports
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Zacks Investment Research