Box ETF (BOXX) Hits Fresh 52-Week High
For investors seeking momentum, Alpha Architect 1-3 Month Box ETF (BOXX) is probably on the radar now. The fund just hit a 52-week high and is up 4.5% from its 52-week low price of $109.11 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might be headed.
BOXX in Focus
It provides access to “box spread”, an alternative lending market common among institutional investors. The fund’s investment objective is to offer investment results that equal or exceed the price and yield performance of an investment that tracks the one-to-three month sector of the United States Treasury Bill market. The product charges 19 basis points (bps) in annual fees (See: All Derivative Based ETFs).
What Led to the Rise?
Current stock market volatility, combined with investors’ concerns about a potential market correction, policy uncertainties in the U.S. economy, and recession fears, has led investors to seek cash-like investments to mitigate risk. This created a short-term boost in the treasury market, which, in turn, might have led BOXX to hit a new 52-week high.
More Gains Ahead?
BOXX may continue its strong performance in the near term, with a positive weighted alpha of 4.40 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
