Schwab Short-Term U.S. Treasury ETF Sees Significant Outflow
Today, analysis of week-over-week changes in shares outstanding among ETFs reveals a notable development for the Schwab Short-Term U.S. Treasury ETF (Symbol: SCHO). This ETF experienced an outflow of approximately $373.8 million, representing a 3.3% decline in shares outstanding, decreasing from 464,700,000 to 449,300,000.
Performance Overview
The chart below illustrates the one-year price performance of SCHO alongside its 200-day moving average:
From the chart, SCHO recorded a low of $23.92 and a high of $24.535 over the past 52 weeks, with its latest trade at $24.30. Comparing the current share price to the 200-day moving average can provide valuable context for technical analysis.
Understanding ETF Dynamics
Exchange-traded funds (ETFs) operate similarly to stocks, but investors trade “units” rather than “shares.” These units can be bought and sold like stocks, but they can also be created or destroyed based on investor demand. Each week, we track the changes in shares outstanding to identify ETFs with significant inflows (increased units) or outflows (reduced units). When new units are created, the underlying assets must be purchased, while unit destruction involves selling those assets. Consequently, large inflows or outflows can influence the individual components held within ETFs.
Click here to discover which 9 other ETFs experienced notable outflows.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
