Utilizing Shares Outstanding
The outstanding shares numbers that are provided for ETFs are a unique and important feature of the product. They can help to interpret the flow of assets into and out of funds. Interpreting what is happening in the fund by watching the shares outstanding number is an important skill to have when utilizing the products.
Shares Outstanding Can Help to Interpret Trading Activity
Let’s go through a few examples of what you can learn from watching the shares outstanding numbers for your arsenal. We will learn that this can in no way be the only metric to monitor. If you see a very high trading volume in an ETF, it does not necessarily indicate that assets are flowing in one direction. If there is a high-frequency trading ...
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