For investors seeking momentum, Simplify Interest Rate Hedge ETF PFIX is probably on the radar. The fund just hit a 52-week high and is up 91.96% from its 52-week low price of $56.88/share.
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 of where it might be headed:
PFIX in Focus
This ETF is active and does not track a benchmark. The Simplify Interest Rate Hedge ETF 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 income potential. The product charges 50 bps in annual fees (See: all Government Bond ETFs).
Why the Move?
The interest rate hedge corner of the broad ETF world has been an area to watch lately, given the hawkish stance of the Fed. The Fed has been hiking interest rates since the start of 2022 to tame the persistently high inflation levels. The increased probability of another rate hike later in the year and the reduced number of rate cuts in 2024 indicate a longer period of higher interest rates. The fund becomes more attractive with rising rate worries gripping the bond investing world.
More Gains Ahead?
Currently, PFIX might continue its strong performance in the near term, with a positive weighted alpha of 87.30, which gives cues to a further rally.
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Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports
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