Ininvestors looking for momentum may have WisdomTree Floating Rate Cash ETF USFR on radar now. The fund recently hit a new 52-week high.
But could there be more gains to come for this ETF? Let’s take a look at the fund and the short-term outlook to get a better idea of where it might be headed.
WisdomTree Floating Rate Treasury ETF (USFR)
The underlying Bloomberg US Treasury Floating Rate Bond Index is a rules-based, market value-weighted index designed to measure the performance of floating rate US Treasury bonds. USFR’s expenditure rate is 0.15%.
The year 2022 could be all about rising interest rate risk, with the Fed planning to raise rates to fight skyrocketing inflation. This has increased the appeal of floating rate bonds. The coupons of these bonds being adjusted periodically, they are less sensitive to a rise in rates compared to traditional bonds.
More wins to come?
The USFR ETF has a positive weighted alpha of 0.10. So there are good prospects for those who want to climb a little further on this booming ETF.
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WisdomTree Floating Rate Cash ETF (USFR): ETF Research Reports
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