From ETF Channel: Exchange traded funds (ETFs) trade just like stocks, but instead of ”shares” investors are actually buying and selling ”units”. These ”units” can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P Homebuilders ETF (XHB) where we have detected an approximate $52.2 million dollar outflow — that’s a 8.0% decrease week over week (from 18,650,016 to 17,150,016). Among the largest underlying components of XHB, in trading today Whirlpool Corp (WHR) is down about 2.9%, PulteGroup Inc (PHM) is down about 2.6%, and Johnson Controls International plc (JCI) is lower by about 0.9%.
XHB’s low point in its 52-week range is $31.82 per share, with $47.20 as the 52-week high point — that compares with a last trade of $34.20. Comparing the most recent share price to the 200-day moving average can also be a useful technical analysis technique
The SPDR S&P Homebuilders ETF (XHB) was trading at $35.45 per share on Wednesday afternoon, up $0.62 (+1.78%). Year-to-date, XHB has declined -19.75%, versus a 2.78% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of ETF Channel.