Since this ETF experienced notable outflows (many units destroyed) on Thursday, the staff at ETFChannel.com takes a technical look at its one-year price performance versus its 200-day moving average and highlights a useful technical analysis technique.
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 Thursday at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P MIDCAP 400 ETF (MDY) where we have detected an approximate $201.3 million dollar outflow, that's a 1.3% decrease week over week (from 59,906,551 to 59,156,551). Among the largest underlying components of MDY, in trading Thursday Federal Realty Investment Trust (FRT) is down about 0.9%, Acuity Brands, Inc. (AYI) is off about 0.3%, and Hologic, Inc. (HOLX) is lower by about 1.5%. For a complete list of holdings, visit the MDY Holdings page
The chart below shows the one-year price performance of MDY, versus its 200-day moving average:
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to Enlarge
Looking at the chart above, MDY's low point in its 52-week range is $216.91 per share, with $282.41 as the 52-week high point, that compares with a last trade of $263.62. Comparing the most recent share price to the 200-day moving average can also be a useful technical analysis technique.
By the Staff of ETFChannel.com
