For investors seeking momentum, Schwab Short-Term U.S. Treasury ETF SCHO is probably on the radar. The fund just hit a 52-week high and is up 2.6% from its 52-week low price of $47.65/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:
Schwab Short-Term U.S. Treasury ETF offers exposure to the short-term U.S. Treasury bond market with an average maturity of 2 years and an effective duration of 1.90 years. SCHO charges 3 bps in annual fees (see: all the Government Bond ETFs here).
The Treasury corner of the fixed-income world has been an area to watch lately, given the Fed rate cut bets this month. The recent batch of data has renewed concerns over the economy's health, bolstering expectations of a rate cut from the Fed this month. Traders now price in a 71% chance that the Fed could cut rates by 25 bps at its next meeting and just a 29% chance of a 50-bps rate cut, according to CME Group FedWatch Tool.
Currently, SCHO has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, a weighted alpha of 2.45 and a low 20-day volatility of 2.1% show that there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab Short-Term U.S. Treasury ETF (SCHO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。