For investors seeking momentum, Alpha Architect 1-3 Month Box ETF BOXX is probably on the radar. The fund just hit a 52-week high and has risen 4.18% from its 52-week low price of $111.78/share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might head:
BOXX in Focus
It is an active fund and provides access to “box spread,” an alternative lending market common among institutional investors. It seeks to provide investment results that equal or exceed the price and yield performance of an investment that tracks the 1-3-month sector of the United States Treasury Bill market. The product charges 19 bps in annual fees (See: All Derivative-Based ETFs).
Why the Move?
The short-term corner of the Treasury market has been an area to watch lately, given the current stock market volatility. A rise in economic uncertainty and growing “risk-off” sentiment, amid unclear Washington–Tehran diplomatic progress, has pushed investors toward cash-like assets to mitigate risk, providing a tailwind for the fund.
More Gains Ahead?
BOXX might continue its strong performance in the near term, with a positive weighted alpha of 4.07 (as per Barchart.com), which gives cues of a further rally.
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This article originally published on Zacks Investment Research (zacks.com).