Significant Weekly Growth in ETF Units Signals Increased Investor Interest
Looking at the week-over-week changes in shares outstanding for exchange-traded funds (ETFs), the ProShares UltraPro Short QQQ (Symbol: SQQQ) has made headlines. This ETF experienced an influx of approximately $196.7 million—an impressive 10.0% rise in outstanding units, increasing from 67,917,690 to 74,717,690 units.
In examining the chart, SQQQ recorded a low of $27.2347 per share within its 52-week range, while its peak was $64.95. As of the last trade, the share price stood at $27.82. Investors often use comparisons of current share prices to the 200-day moving average as part of their technical analysis strategy.
ETFs function similarly to stocks; however, investors trade ‘units’ instead of shares. These units can be created or eliminated based on market demand. Each week, we assess changes in outstanding shares to identify ETFs with significant inflows—indicating new unit creation—or outflows, suggesting unit destruction. When new units are created, the underlying assets of the ETF must be acquired. Conversely, when units are destroyed, those assets have to be sold, thereby influencing the individual holdings of the ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
- Stock RSI
- Funds Holding STAR
- Avery Dennison 13F Filers
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
