Surge in iShares U.S. Treasury Bond ETF Amid Notable Inflows

Investors are showing strong interest in the iShares U.S. Treasury Bond ETF (Symbol: GOVT), leading to significant growth in shares outstanding.

ETF Inflow Highlights a Growing Demand

This past week, the GOVT experienced an inflow of approximately $301.0 million, marking a 1.0% week-over-week rise in outstanding units, from 1,263,800,000 to 1,277,000,000.

Price Performance Analysis

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

During the last year, GOVT’s share price has fluctuated between a low of $22.08 and a high of $23.689, with the most recent trading price recorded at $22.86. Evaluating the latest price against the 200-day moving average offers useful insights for technical analysis.

Understanding ETF Trading Mechanics

Exchange-traded funds (ETFs) function similarly to stocks, but when investors buy and sell, they are actually trading “units.” Unlike standard shares, units can be created or destroyed based on investor demand. Each week, we monitor the changes in shares outstanding to identify which ETFs are experiencing significant inflows (new units created) or outflows (old units destroyed). The creation and destruction of units affect the underlying assets within the ETFs, which can influence the individual components that are held.

Click here to find out which 9 other ETFs had notable inflows »

Additional Resources:

• Closed End Fund Screener
• DE Historical PE Ratio
• DURA YTD Return

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.