Investors back away from leveraged RE bets

These investors are the smart ones.

Investors Back Away From Leveraged RE Bets

Jul. 11 2011 – 11:24 am | 1,214 views | 0 recommendations | 0 comments


Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Proshares Ultra Real Estate (URE) where we have detected an approximate $14.6 million dollar outflow — that’s a 2.7% decrease week over week (from 8,429,372 to 8,204,372). Among the largest underlying components of URE, in trading today American Campus Communities (ACC) is off about 1.3%, and American Capital Agency (AGNC) is lower by about 1%. For a complete list of holdings, visit the URE Holdings page »

The chart below shows the one year price performance of URE, versus its 200 day moving average:

Looking at the chart above, URE’s low point in its 52 week range is $35.44 per share, with $65.20 as the 52 week high point — that compares with a last trade of $62.55. Comparing the most recent share 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 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.

Disclosure: I don’t own AGNC.

Subscribe today for free at to discover high dividend stocks with earning power and strong balance sheets.

Be seeing you!

Published in: on July 11, 2011 at 6:34 pm  Leave a Comment  

The URI to TrackBack this entry is:

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: