Major ETF Experiences 2.1% Week-Over-Week Increase in Units Outstanding
Today at ETF Channel, we highlight the iShares 5-10 Year Investment Grade Corporate Bond ETF (Symbol: IGIB) which recently noted an approximate inflow of $318.7 million. This inflow represents a 2.1% increase in outstanding units, rising from 281,700,000 to 287,750,000 over the past week.
The chart below illustrates IGIB’s price performance over the past year in relation to its 200-day moving average:
According to the chart, IGIB’s lowest point in the past 52 weeks was $49.905 per share, while the highest was $54.10. The most recent trade price stands at $52.60. Utilizing the 200-day moving average can provide critical insight into the ETF’s performance trends over time.
Exchange-traded funds (ETFs) operate similarly to stocks but involve the trading of “units” instead of shares. These units can be exchanged like stocks, however, they can also be created or destroyed based on investor demand. Our weekly analysis tracks changes in shares outstanding, allowing us to identify ETFs that see significant inflows (indicating new unit creation) or outflows (indicating unit destruction). The creation of new units necessitates purchasing the underlying assets, while unit destruction generally involves selling those assets. Therefore, substantial inflows and outflows can influence the individual stocks held within the ETFs.
Click here to discover which 9 other ETFs had significant 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.
