Significant Outflow Observed in iShares 3-7 Year Treasury Bond ETF
Looking at week-over-week changes in shares outstanding across the ETF landscape, a notable point of interest is the iShares 3-7 Year Treasury Bond ETF (Symbol: IEI). This ETF experienced an outflow of approximately $366.0 million, marking a 2.2% decrease in shares outstanding from 141,200,000 to 138,100,000.
The chart above illustrates IEI’s one-year price performance alongside its 200-day moving average. Within its 52-week range, the ETF recorded a low of $113.85 per share and a high of $120.28, with the most recent trade at $117.90. Evaluating the current share price against the 200-day moving average serves as a useful technical analysis tool for investors.
Exchange-traded funds (ETFs) function similarly to stocks, with investors buying and selling “units” instead of “shares.” These units can be traded just like regular stocks, but can also be created or destroyed based on investor demand. Each week, we track changes in shares outstanding to identify ETFs with significant inflows (indicating the creation of new units) or outflows (suggesting the destruction of old units). The creation of new units typically requires purchasing the underlying holdings, while unit destruction involves selling those holdings. Thus, substantial flows can impact the individual securities held within the 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.
