SPY’s Slump and Its Underlying Components
Investors are waving goodbye to the SPDR S&P 500 ETF Trust (SPY) as it experiences a $463.5 million dollar outflow this week, marking a 0.1% decrease in shares outstanding. This decline takes SPY from 977,680,000 to 976,780,000 shares. Among its key components, Berkshire Hathaway Inc New (BRK.B) sees a 0.6% dip, while UnitedHealth Group Inc (UNH) and Exxon Mobil Corp (XOM) manage modest gains of 0.2% and 0.3%, respectively.
SPY’s Price Performance
Illustrated in the one-year price performance chart below aganst its 200-day moving average, SPY has hit a 52-week low of $386.29 per share but soared to a high of $518.2201. The current trading stands at $510.40 per share. Monitoring the share price against the 200-day moving average is a potent tool in technical analysis for investors seeking insights on market trends.
Understanding ETFs and Market Flows
Exchange-traded funds (ETFs) have characteristics akin to stocks, where investors transact in units instead of shares. These units are tradable, mirroring stocks’ liquidity, but are also subject to creation or destruction based on market demand. Weekly monitoring of changes in shares outstanding data aids in identifying ETFs witnessing significant inflows (creation of new units) or outflows (destruction of units). Notable flows impact the underlying assets of ETFs, as the creation and destruction of units involve buying and selling of holdings, thereby influencing individual component valuations.
Click here to discover other 9 ETFs undergoing notable outflows.
Further Insights:
- Top Ten Hedge Funds Holding WEYS
- WRB shares outstanding history
- JAQC Videos
The perspectives shared in this article belong to the author and do not necessarily align with Nasdaq, Inc.’s views and opinions.
