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 rose 4.39% from its 52-week low price of $109.62/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
Alpha Architect 1-3 Month Box ETF is an options-based alternative to an ultrashort-duration bond position, providing access to “box spread” market. 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, driven by concerns about valuations, a potential AI bubble and waning hopes, 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 4.22 (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).
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