Vanguard Treasury ETF Sees Significant Inflows This Week
Examining recent week-over-week changes in shares outstanding among ETFs, the Vanguard Short-Term Treasury ETF (Symbol: VGSH) shows noteworthy activity. It has experienced an inflow of approximately $795.0 million this week, which represents a 3.7% increase in outstanding units, rising from 369,059,331 to 382,591,303.
The following chart illustrates VGSH’s price performance over the past year, alongside its 200-day moving average:
In the past 52 weeks, VGSH’s shares have fluctuated between a low of $57.46 and a high of $59.13, with the most recent trade occurring at $58.70. Assessing the current share price against the 200-day moving average can be a beneficial technical analysis approach, as outlined in our previous discussions about moving averages.
Exchange Traded Funds (ETFs) operate similarly to stocks; however, investors buy and sell “units” instead of “shares”. These units can be traded like stocks but are also subject to creation or destruction based on investor demand. Each week, we review changes in shares outstanding to identify ETFs with significant inflows (indicating new units created) or outflows (indicating units destroyed). The creation of new units requires purchasing the ETF’s underlying holdings, while the destruction of units necessitates selling those holdings. Consequently, significant capital flows can influence the individual components within the ETFs.
Click here to discover which 9 other ETFs experienced notable inflows this week »
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
