Investors Withdraw Millions from SPYD ETF
One of the key takeaways from examining ETF data this week is the substantial outflow from the SPDR Portfolio S&P 500 High Dividend ETF (Symbol: SPYD). A striking $265.4 million has been withdrawn, marking a 3.9% decrease week over week, resulting in a drop from 180,150,000 to 173,200,000 shares outstanding. The major underlying components of SPYD have also seen a dip in trading. Ford Motor Co. (F) is down by approximately 0.9%, Digital Realty Trust Inc (DLR) is down by about 0.7%, and Public Service Enterprise Group Inc (PEG) has experienced a 0.1% decline. With such large outflows, it’s evident that investors are moving away from this ETF.
Technical Analysis Reveals SPYD’s Price Performance
Examining the one-year price performance of SPYD against its 200-day moving average reveals notable insights. The ETF hit a low point of $32.88 per share within its 52-week range, whereas it peaked at $42.18. In the latest trade, the share price stood at $37.94. This comparative analysis to the 200-day moving average serves as a useful technique in evaluating the technical aspects of SPYD.
Implications of ETF Outflows on Underlying Holdings
Exchange traded funds (ETFs) essentially replicate the trading dynamics of stocks, with investors buying and selling “units” instead of shares. These “units” can be traded like stocks and can also be created or destroyed to meet investor demand. By monitoring the week-over-week change in shares outstanding data, we can identify ETFs experiencing significant inflows or outflows. The creation of new units necessitates purchasing the underlying holdings of the ETF, while the destruction of units entails selling these holdings. Therefore, substantial flows can have a direct impact on the individual components held within ETFs.
Identifying Other ETFs with Noteworthy Outflows
Interested in finding out about other ETFs experiencing significant outflows? Click here to discover 9 other ETFs that have observed notable outflows. This will provide a comprehensive picture of current trends in the ETF market.