Amidst the tumultuous waves of the stock market, a singular standout has emerged: The Communication Services Select Sector SPDR Fund (XLC). This ETF has experienced a remarkable surge with an approximate $137.1 million dollar inflow, signifying a 0.8% increase in outstanding units over the span of just one week. The profound implications of this tidal wave of investment cannot be overlooked, with significant impacts on its underlying components such as Alphabet Inc (GOOG), Netflix Inc (NFLX), and Walt Disney Co. (DIS), all of whom have been uplifted by this surging tide. As of the latest trading activities, GOOG is up about 0.4%, NFLX has risen by around 3.6%, and DIS is up by 0.6%. This flood of capital has the potential to reshape the investment landscape as we know it.
When we cast our gaze upon the one year price performance of XLC, against its 200-day moving average, the impact becomes even more apparent. The ETF’s 52-week range has seen a low point of $51.37 per share and a high point of $80.215 – a stark contrast to its last trade value of $79.20. The comparison of the most recent share price to the 200-day moving average serves as a vital technical analysis technique, revealing valuable insights into the market’s temperament and trend.
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Exchange traded funds (ETFs) operate much like stocks; however, instead of traditional ”shares,” investors trade in ”units”. These ‘units’ can be exchanged akin to stocks, but possess the unique ability to be created or destroyed in response to investor demand. At this juncture, our attention is fixed upon the week-over-week change in shares outstanding data, to decipher any notable inflows or outflows within the ETFs. The creation of new units signifies the acquisition of the ETF’s underlying holdings, while the destruction of units involves divestment of these holdings – a fluid cycle that can reverberate across individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Institutional Holders of ARGU
WEN Insider Buying
PSCM Dividend History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
