Schwab Municipal Bond ETF Sees Significant Inflow This Week

Noteworthy Increase in Outstanding Units

Looking at recent changes in week-over-week shares outstanding among various ETFs, the Schwab Municipal Bond ETF (Symbol: SCMB) shows a notable inflow of approximately $326.3 million. This represents a 20.6% week-over-week rise in outstanding units, increasing from 63,000,000 to 76,000,000.

Price Performance Compared to Moving Average

The chart below illustrates SCMB’s one-year price performance against its 200-day moving average:

Taking a closer look, SCMB’s 52-week range has a low of $24.21 per share and a high of $26.37, with the last recorded trade at $25.03. Analyzing the recent share price in relation to the 200-day moving average can provide valuable insights for technical analysis.

Understanding ETF Trading Mechanics

Exchange-traded funds (ETFs) operate similarly to stocks; however, investors are buying and selling “units” rather than “shares.” These units can be traded just like stocks but can also be created or destroyed to meet investor demand. Each week, we observe the week-over-week changes in outstanding shares to identify ETFs experiencing significant inflows, indicating newly created units, or outflows, suggesting units are being destroyed. Creation of new units necessitates purchasing the underlying holdings of the ETF, while the destruction of units involves selling those holdings. Therefore, substantial flows can influence the individual components within the ETFs.

For insights on other notable ETFs with significant inflows, click here.

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• MBIN Dividend Growth Rate

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