Looking closely at recent changes in exchange-traded funds (ETFs), the iShares Russell 2000 ETF (Symbol: IWM) has shown remarkable activity. This week, the fund saw an inflow of approximately $837.5 million, leading to a 1.1% increase in shares outstanding—growing from 324,100,000 to 327,750,000 units.
The chart above illustrates IWM’s performance over the last year compared to its 200-day moving average. The ETF’s 52-week low sits at $191.34 per share, while its high is $244.98. Currently, it trades at $229.46. Tracking the current share price against the 200-day moving average can serve as a practical technique for investors.
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Exchange-traded funds operate similarly to stocks, except that investors buy and sell “units.” These units can be created to meet demand or destroyed when demand decreases. Each week, we analyze the changes in shares outstanding to identify ETFs that are either gaining or losing investor interest. The creation of new units typically indicates that the underlying assets of the ETF need to be purchased, while the destruction of units implies selling off those assets. Hence, significant flows can influence the individual stocks held within these ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Further Reading:
– DAZA Videos
– Top Ten Hedge Funds Holding FLXI
– Funds Holding FUFU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
