Vanguard Mortgage-Backed Securities ETF Sees Significant Week-Over-Week Growth

Impressive Inflows Drive Up Outstanding Units

Today, we are highlighting the changes in shares outstanding for various ETFs, particularly the Vanguard Mortgage-Backed Securities ETF (Symbol: VMBS). This ETF recorded an inflow of approximately $1.2 billion, marking a notable 6.7% increase in its outstanding units. The units climbed from 404,670,122 to 431,629,227 over the past week.

Examining the chart, the lowest price for VMBS in its 52-week range was $44.04 per share, while the highest point hit $47.59. In comparison, the most recent trading price stands at $45.05. This comparison can be useful, as looking at the share price against the 200-day moving average is a common technical analysis method—learn more about the 200-day moving average ».

Investors should understand that exchange-traded funds (ETFs) function similarly to stocks. However, instead of trading “shares,” investors are actually buying and selling “units.” These units can be traded like stocks but can also be created or destroyed based on investor demand. Each week, we track the week-over-week changes in outstanding shares to identify ETFs with significant inflows or outflows. Notably, the creation of new units requires purchasing the underlying assets of the ETF, while destroying units requires selling them. Therefore, large inflows or outflows can influence the individual securities held within ETFs.

Click here to find out which 9 other ETFs had notable inflows »

Also see:

• PZA Options Chain
• PSJ Historical Stock Prices
• NUGT Split History

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.