VIG, ABT, GD, FDX: Large Outflows Detected at ETF

09/17/2015 7:00 am EST

Focus: ETFS

On Wednesday, looking at week-over-week shares outstanding changes among the universe of ETFs they cover, the staff at highlights one standout with large outflows detected and technically analyzes its one year price performance versus its 200-day moving average.

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 Wednesday at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Dividend Appreciation ETF (VIG) where we have detected an approximate $56.6 million dollar outflow, that's a 0.3% decrease week-over-week (from 248,676,439 to 247,926,838). Among the largest underlying components of VIG, in trading Wednesday Abbott Laboratories (ABT) is off about 0.1%, General Dynamics Corp. (GD) is down about 0.3%, and FedEx Corp. (FDX) is lower by about 3.5%.

The chart below shows the one year price performance of VIG, versus its 200-day moving average:

Click to Enlarge

Looking at the chart above, VIG's low point in its 52-week range is $47.70 per share, with $83.28 as the 52-week high point. That compares with a last trade of $75.72. Comparing the most recent share price to the 200-day moving average can also be a useful technical analysis technique.

By the Staff of

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