SPDR SSGA US Sector Rotation ETF Experiences Significant Outflow

Today, ETF Channel reports a notable change in shares outstanding for the SPDR SSGA US Sector Rotation ETF (Symbol: XLSR). The fund saw an outflow of approximately $225.2 million, equating to a 24.3% decrease week over week. This drop brings shares outstanding down from 17,710,000 to 13,400,000.

Market Performance of XLSR’s Components

Among XLSR’s significant underlying assets, various sector funds showed mixed performance today. The Materials Select Sector SPDR Fund (Symbol: XLK) decreased by about 0.3%, while the XLP saw a modest rise of approximately 0.8%. The Materials Select Sector SPDR Fund (Symbol: XLC) experienced a slight increase of about 0.2%. For a detailed overview of XLSR’s holdings, visit the XLSR Holdings page.

XLSR’s Price Performance Overview

The following chart illustrates XLSR’s price performance over the past year in relation to its 200-day moving average:

Over the past year, XLSR’s share price has ranged from a low of $43.22 to a high of $56.2971. The most recent share price is $52.07, providing insight into its relationship with the 200-day moving average, an important technical analysis metric.

Understanding ETF Trading Mechanics

Exchange-traded funds (ETFs) operate similarly to stocks, but investors buy and sell “units.” These units can be traded like stocks, yet they can also be created or redeemed according to market demand. Each week, we track the week-over-week changes in outstanding shares to identify ETFs that are seeing significant inflows (indicating the creation of new units) or outflows (indicating the redemption of existing units). The creation of new units requires purchasing the ETF’s underlying holdings, while destroying units necessitates selling these holdings. Thus, substantial flows can influence the performance of the components held within ETFs.

Click here to see which 9 other ETFs experienced notable outflows.

Also See:

• Top Ten Hedge Funds Holding JANZ
• Top Ten Hedge Funds Holding GHY
• Bunge Global SA DMA

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