Significant Selling Pressure on USO ETF: $132.4 Million Outflow Recorded
This week, the USO ETF (Symbol: USO) has caught attention due to a significant outflow of approximately $132.4 million. This translates to an 8.6% decrease in shares outstanding, dropping from 20,923,603 to 19,123,603.
Examining the chart, USO’s lowest price over the past year is $63.84 per share, while the highest price reached $83.41. Currently, the ETF is trading at $73.19. For many investors, comparing the latest share price with the 200-day moving average can offer valuable insights into price trends and potential movement.
Exchange-traded funds (ETFs) work similarly to stocks. However, instead of “shares,” investors deal in “units.” These units can be bought or sold like stocks, but they can also be created or destroyed based on investor interest. Each week, we keep track of week-over-week changes in shares outstanding to identify ETFs with significant inflows (new units created) or outflows (existing units destroyed). Creating new units typically means purchasing the underlying assets of the ETF, while destroying units often involves selling those assets. Consequently, large inflows or outflows can influence the individual stocks or bonds within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
