Significant Growth in Outstanding Units
Looking closely at the week’s ETF data, the iShares Short Treasury Bond ETF (Symbol: SHV) has emerged as a major player, showing an approximate $157.5 million inflow. This equates to a 0.8% increase in outstanding units, rising from 171,300,000 to 172,730,000.
The chart below illustrates SHV’s price performance over the past year compared to its 200-day moving average:
As shown in the chart, SHV reached a low of $109.91 per share over the past year, while its peak was $110.64. The most recent trading price stands at $110.17. Analyzing the current price against the 200-day moving average can offer valuable insights for investors — learn more about the 200-day moving average.
Understanding ETF Mechanisms
Exchange-traded funds (ETFs) function similarly to stocks; however, investors trade “units” instead of shares. These units can be bought and sold like stocks but also can be created or removed based on demand from investors. Each week, we track changes in shares outstanding, keeping an eye out for ETFs with significant inflows (new units created) or outflows (old units removed). The creation of new units necessitates purchasing the ETF’s underlying holdings, whereas removing units requires selling those holdings, making large flows significant for the individual components within ETFs.
Click here to discover which 9 other ETFs experienced notable inflows.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
