Significant Outflows Impact iShares iBoxx $ Investment Grade ETF
Today’s analysis from ETF Channel highlights a notable week-over-week reduction in shares for the iShares iBoxx $ Investment Grade Corporate Bond ETF (Symbol: LQD). The ETF experienced a substantial outflow of approximately $513.1 million, reflecting a 1.7% decline from 278,900,000 shares to 274,100,000 shares.
The chart below illustrates LQD’s price performance over the past year alongside its 200-day moving average:
According to the chart, LQD’s price has fluctuated between a low of $103.45 and a high of $114.07 during the last 52 weeks. The latest trade price is $106.88. Investors often compare current prices to the 200-day moving average as a technical analysis tool, which can provide further insights into market direction.
Free report: Top 8%+ Dividends (paid monthly)
Exchange Traded Funds (ETFs) function similarly to stocks, but investors are trading ‘units’ rather than shares. These units are transferable like shares and can also be created or destroyed based on investor interest. Our team monitors the changes in share quantities weekly, identifying ETFs that see significant inflows—indicating new units created—or outflows, which shows units being removed. When new units are created, the ETF must acquire more underlying assets, while unit destruction entails selling assets, which can affect the securities held by the ETF.
Click here to find out which nine other ETFs have also faced significant outflows »
Check out:
- LPS Insider Buying
- FRLN Videos
- FOCS Options Chain
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
