Significant Change in Units Amid Rising Demand
Today, we are observing a remarkable $202.4 million inflow into the Semiconductor ETF (Symbol: SMH). This inflow resulted in a 0.8% increase in outstanding units, growing from 98,041,874 to 98,841,874.
SMH’s price performance over the past year reveals a low of $136.10 per share, while its peak reached $283.07. The most recent trading price sits at $252.84. Investors often reference the 200-day moving average for technical analysis, which can provide additional insights into price trends and stability.
Exchange Traded Funds (ETFs), including SMH, operate similarly to stocks. Instead of “shares,” investors buy and sell “units,” which can be created or destroyed based on demand. Each week, we track significant changes in outstanding shares to pinpoint ETFs experiencing notable inflows—indicating new units being created—or outflows, where units are removed. The creation of new units necessitates purchasing the ETF’s underlying holdings, while outflows require selling off those holdings. Large flows can impact the individual components within the ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
