“ETF Outflows Impacting FNX, AFRM, HP, CAVA”

Published On: October 17, 2024 11:43 am

First Trust Mid Cap Core AlphaDEX Fund Sees Significant Outflow Amid Market Fluctuations

ETF Experiences $292.5 Million Decline, Affecting Key Holdings

This past week, notable changes in shares outstanding have emerged among ETFs tracked by ETF Channel. One ETF that drew attention is the First Trust Mid Cap Core AlphaDEX Fund (Symbol: FNX), which witnessed an outflow of approximately $292.5 million. This marks an 18.6% decrease in shares outstanding, dropping from 13,200,002 to 10,750,002.

Among FNX’s larger holdings, Affirm Holdings Inc (Symbol: AFRM) decreased by about 6.9%, Helmerich & Payne, Inc. (Symbol: HP) saw a decline of approximately 1.1%, while CAVA Group Inc (Symbol: CAVA) experienced a slight increase of about 0.1%. For a full list of holdings, visit the FNX Holdings page.

The chart below illustrates the one-year price performance of FNX compared to its 200-day moving average:

First Trust Mid Cap Core AlphaDEX Fund 200 Day Moving Average Chart

Analyzing the chart reveals FNX’s 52-week low at $85.0088 per share and a high of $119.87. The most recent trading price stands at $119.47. Comparing the current share price to the 200-day moving average can provide useful insights for technical analysis.

Exchange traded funds (ETFs) function similarly to stocks, with investors purchasing and selling “units” instead of shares. These units are tradable like stocks, but they can also be created or destroyed based on investor demand. Weekly monitoring of changes in shares outstanding helps identify ETFs with significant inflows or outflows. Creating new units necessitates purchasing the ETF’s underlying holdings, whereas destroying units means selling those holdings. Therefore, large flows can influence the performance of individual components within the ETFs.

Click here to find out which 9 other ETFs experienced notable outflows.