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:
TIP in Focus
This fund provides exposure to U.S. TIPS, which are government bonds whose face value rises with inflation. It has a weighted maturity of 8.17 years and effective duration of 7.52 years. TIPS focuses on top-rated bonds with AAA credit ratings, suggesting no default risk. The product charges 19 bps in annual fees (see: all the Inflation-Protected Bond ETFs here).
Why the Move?
The Treasury Inflation-Protected Securities (TIPS) corner of the bond market has been an area to watch lately given that inflation is on rise. Renewed trade fight between the two biggest economies with a new tariff increase will boost U.S. inflation and could dampen economic growth.
More Gains Ahead?
It seems that TIP might remain strong given a weighted alpha of 3.20% and a lower 20-day volatility of 3.35%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
The iShares TIPS Bond ETF (TIP) was trading at $113.59 per share on Friday morning, down $0.05 (-0.04%). Year-to-date, TIP has gained 0.29%, versus a 7.90% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Yahoo! Finance .