This week, a major trend has emerged in the ETF market. The iShares Core S&P 500 ETF (Symbol: IVV) experienced a substantial outflow of approximately $1.3 billion, marking a 0.2% decline in shares outstanding. The count decreased from 943,500,000 to 941,350,000. Among IVV’s important components, today’s trading revealed Alphabet Inc (Symbol: GOOGL) fell about 1.7%, while Costco Wholesale Corp (Symbol: COST) slipped 0.6%. In contrast, Philip Morris International Inc (Symbol: PM) saw a rise of approximately 1.2%. For a comprehensive overview of all holdings, please visit the IVV Holdings page ».
Performance Overview: IVV’s Recent Trading Trends
The chart below illustrates the price performance of IVV over the past year compared to its 200-day moving average:
Currently, IVV’s share price stands at $589.86. Within the last year, the ETF reached a low of $450.19 and a high of $603.09. Analyzing the share price relative to the 200-day moving average is a common technical analysis method that can provide insight — learn about the 200-day moving average ».
Understanding ETFs and Their Trading Mechanics
Exchange-traded funds (ETFs) function similarly to stocks, where investors trade ‘units’ instead of ‘shares’. These units can be exchanged like stocks, and they can also be created or eliminated based on investor demand. Each week, we track changes in shares outstanding to identify ETFs undergoing significant inflows or outflows. When new units are created, the ETF must purchase underlying assets, whereas when units are destroyed, those assets must be sold. Thus, large outflows or inflows can significantly influence the components held within ETFs.
Click here to find out 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 the views of Nasdaq, Inc.
