Interest Rate Hedge ETF (PFIX) Hits New 52-Week High
Simplify Interest Rate Hedge ETF PFIX is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has risen 38.99% from its 52-week low price of $41.37 per share.
Are more gains in store for this ETF? Let us 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.
PFIX in Focus
The fund employs an active strategy and seeks to hedge interest rate movements arising from rising long-term interest rates and to benefit from market stress when fixed income volatility increases, while providing the potential for income. PFIX has a dividend yield of 6.45% and charges 0.50% in annual fees (see: all the Government Bond ETFs here).
Why the Move?
The interest rate hedge corner of the market has been an area to watch as Treasury yields climb and investors brace for a potentially more hawkish Fed. The 10-year Treasury yield recently rose to its highest level since 2007, following hawkish Fed commentary and stronger-than-expected economic data.
More Gains Ahead?
PFIX might continue its strong performance in the near term, with a positive weighted alpha of 27.92 (per Barchart.com), which hints at a rally.
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This article originally published on Zacks Investment Research (zacks.com).