Breaking Down the Numbers
Delving into the recent movements within the realm of Exchange Traded Funds (ETFs), a clear standout emerges in the form of the iShares Core Total USD Bond Market ETF (Symbol: IUSB). Notably, there has been a substantial influx of approximately $232.8 million, marking a 0.8% surge in outstanding units over the past week (escalating from 607,900,000 to 613,000,000).
Analyzing Performance
A glance at the one-year price trajectory of IUSB against its 200-day moving average reveals interesting dynamics.
Upon closer inspection, the chart unveils that IUSB’s 52-week range manifests a low of $42.56 per share and a high of $46.58 per share — underscoring a recent trade at $45.62. Assessing the current share price against the 200-day moving average can be an insightful technical analysis method.
The ETF Landscape
ETFs function akin to stocks; however, investors engage in the trading of ‘units’ rather than conventional ‘shares.’ These ‘units’ can be bought or sold like stocks and have the added feature of being generated or liquidated to accommodate investor demand. Weekly monitoring of alterations in shares outstanding data unveils ETFs witnessing notable inflows (indicating the creation of multiple new units) or outflows (hinting at the destruction of old units). The initiation of new units entails the acquisition of underlying ETF holdings, while the elimination of units involves divesting underlying assets, thereby large flows possess the potential to influence the individual components held within ETFs.
Click here to explore which 9 other ETFs have witnessed significant inflows »
Additional Resources:
- Dow Component Preferreds
- Top Ten Hedge Funds Holding JBND
- CSBK Options Chain
The perspectives articulated in this piece are the personal opinions of the author and do not necessarily mirror those of Nasdaq, Inc.
