For investors seeking momentum, Invesco Taxable Municipal Bond ETF (LON:BAB) is probably on the radar now. The fund just hit a 52-week high and is up about 13.7% from its 52-week low price of $29.52/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 on where it might be headed:
BAB in Focus
The fund looks to track the ICE (NYSE:ICE) BofAML US Taxable Municipal Securities Plus Index. The index follows the performance of US dollar-denominated taxable municipal debt publicly issued by US states and territories, and their political subdivisions, in the US market. The product charges 28 basis points in expense ratio and yields about 3.52% annually (see: all the municipal bond ETFs here).
Why the Move?
The fixed-income world has been an area to watch lately as investors are flocking to safe havens amid coronavirus scare that would derail the global economic growth. The number of confirmed cases has increased outside China. The flight-to-safety brought down U.S. benchmark treasury yields at extremely low levels. This, in turn, probably brightened the demand for this muni bond ETF that is yielding 3.52% annually.
More Gains Ahead?
The fund has a Zacks ETF Rank #3 (Hold). The ETF has a positive weighted alpha of 12.90, which gives cues of further rally.
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Invesco Taxable Municipal Bond ETF (BAB): ETF Research Reports
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Zacks Investment Research