In the past week, the Invesco S&P 500 Quality ETF (referred to as SPHQ) experienced an outflow of approximately $297.3 million, resulting in a decrease of about 1.9% in the number of units held (from 210,260,000 to 206,220,000). At the same time, several core component stocks of SPHQ also experienced fluctuations. During today's trading session, TJX Companies slightly fell by about 0.1%, KLA Corp also dropped by the same margin, while 3M Co rose by about 1.9%. This may reflect the direct impact of ETF fund flows on individual stocks.

Looking at SPHQ's price performance over the past year, its fluctuation range had a low point of $57.67 per share and a high point of $73.79. The current trading price is $73.51, which is close to its yearly high, while the comparison with the 200-day moving average remains an important indicator for many investors when conducting technical analysis.

ETF, as a trading method different from stocks, can be bought and sold like stocks. The increase or decrease of these units reflects changes in investor demand: if there is a need to increase new units, more underlying assets must be purchased; while a decrease in units means that some underlying assets need to be sold. Every week, we closely monitor the changes in the number of ETF units to identify significant inflows or outflows of funds in ETFs, as this often indicates major market trends.

In short, continuously monitoring these dynamics can help us gain insights into market capital flows and the potential fluctuations of ETF constituents. In such a market environment, maintaining sensitivity is key. Any thoughts or experiences? Leave us a message!