Vanguard’s information technology ETF sees strong cash outflow

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LLooking at week-over-week stocks today, the changes underway among the universe of ETFs covered at ETF channel, ETF Vanguard Information Technology (Symbol: VGT) stands out with an outflow of around $1.0 billion, down 2.0% week-on-week (from 123,257,541 to 120 836 742). Among VGT’s largest underlying constituents, in trading today, Applied Materials, Inc. (Symbol: AMAT) is down around 3.1%, International Business Machines Corp (Symbol: IBM) is down around 3.1%. down around 2.6% and ServiceNow Inc (Symbol: NOW) down around 2%. For a full list of holdings, visit the VGT Holdings page »

The chart below shows the one-year price performance of VGT, compared to its 200-day moving average:

Looking at the chart above, VGT’s low point in its 52-week range is $335.60 per share, with $467.06 as its 52-week high – compare with a last trade of 407.81 $. Comparing the most recent stock price to the 200-day moving average can also be a useful technical analysis technique — learn more about the 200-day moving average ».

Exchange-traded funds (ETFs) trade like stocks, but instead of “stocks,” investors actually buy and sell “units.” These “units” can be traded like shares, but can also be created or destroyed to meet investor demand. Every week, we monitor the week-over-week trend of outstanding stock data, to monitor which ETFs are experiencing inflows (many new units created) or outflows (many old units destroyed) notables. The creation of new units will mean that the ETF’s underlying holdings must be bought, while the destruction of units involves the sale of underlying holdings, so large flows can also impact the individual components held in ETFs.

Click here to find out which 9 other ETFs had notable exits »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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