Recent analysis from ETF Channel has highlighted a notable shift in the iShares iBoxx $ Investment Grade Corporate Bond ETF (Symbol: LQD). The ETF experienced an outflow of around $876.6 million, reflecting a 3.1% decrease in shares outstanding over the past week, dropping from 259,800,000 to 251,800,000.
The accompanying chart illustrates LQD’s one-year price performance alongside its 200-day moving average:
According to the data, LQD’s lowest price in the past year was $99.01 per share, while the highest was $114.07. The ETF’s most recent trade is at $109.78. Analyzing the current share price against the 200-day moving average is a common technical method used by investors.
Exchange Traded Funds (ETFs) act similarly to stocks. However, instead of “shares,” investors buy and sell “units.” These units are traded just like stocks, but can also be created or destroyed to meet demand. Each week, we track changes in shares outstanding to identify ETFs with significant inflows (indicating new units being created) or outflows (indicating units being removed). When new units are created, the ETF must purchase the underlying assets, whereas when units are destroyed, it can lead to selling those assets. Consequently, these large movements can affect the individual components held within the ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
Also see:
- BCDA YTD Return
- CMLT Historical Stock Prices
- LNG market cap history
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
