Time Plus News

Breaking News, Latest News, World News, Headlines and Videos

iShares Treasury Floating Rate Bond ETF (TFLO) at a 52-Week High

This story originally appeared on Zacks

The iShares Treasury Floating Rate Bond ETF TFLO is probably a suitable pick for investors looking for momentum. TFLO hit a 52-week high and is up from its 52-week low price of $50.25/share.

– Zacks

Let’s take a look at TFLO and its near-term outlook to gauge where it might be headed.

TFLO in Focus

The iShares Treasury Floating Rate Bond ETF seeks to track the investment results of an index composed of U.S. Treasury floating rate bonds. It has AUM of $472.8 million and charges an expense ratio of 15 basis points.

Why the Move?

Considering the consistently hot inflation readings, the central bank has already started tapering bond purchases, which it expects to complete by March. The Fed is expected to begin raising its benchmark interest rate in March. The Federal Reserve may take a more aggressive approach in raising interest rates. In fact, Goldman Sachs is expecting the Federal Reserve to increase interest rates seven times this year, according to a CNBC article.

This has raised the appeal for floating rate bonds. Since the coupons of these bonds are adjusted periodically, they are less sensitive to an increase in rates compared with traditional bonds. This is making funds like TFLO an impressive investment option.

More Gains Ahead?

It seems like the iShares Treasury Floating Rate Bond ETF will remain strong, with a positive weighted alpha of 0.13, which gives cues of a further rally.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

Get it free >>

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
iShares Treasury Floating Rate Bond ETF (TFLO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research

Source link