Deep Dive into Recent ETF Outflows Deep Dive into Recent ETF Outflows

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By Ronald Tech

Exploring ETF Trends

Looking at units outstanding versus one week prior within the universe of Exchange-Traded Funds (ETFs) covered at ETF Channel, a significant outflow emerged recently. The iShares Russell Mid-Cap ETF witnessed a substantial decline, with 40,850,000 units being eliminated, marking an 8.9% decrease week over week. Amidst this activity, Arthur J. Gallagher experienced a modest 0.1% uptick in morning trading, while Hilton Worldwide Holdings held relatively steady.

Shifting Fund Dynamics

On a percentage change basis, the United States Fund Finder & ETF Screener stood out with the most significant outflow. Shedding 40,000 units, the ETF experienced a notable 33.3% decline in outstanding units compared to the previous week. Notably, within the underlying components of NZUS, Microsoft faced a 0.5% downturn in morning trading, contrasting with Apple’s 0.5% rise.


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"Over time, it takes just a few winners to work wonders." -- Warren Buffett, from the 2022 Berkshire Hathaway letter to shareholders

One big winner can make a fortune. No one knows this better than the Oracle of Omaha.

Take Apple, one of Buffett's most famous investments. A $50,000 investment, made in 2007 -- the same year the iPhone debuted -- would have grown to a cool $3.5 million today, a mere 17 years later.

Are there any stocks out there today with that type of potential? Of course. Here are three that might have what it takes.

Image source: Getty Images.

Microsoft: The Giant's Stride in AI

Topping the list is Microsoft (NASDAQ: MSFT). The company that made former CEOs Bill Gates and Steve Ballmer some of the richest men in the world is once again the largest company on the face of the Earth with a market cap topping $3 trillion. And thanks to its many artificial intelligence (AI)-related ventures...

Let's start with the company's cloud services business. It's already a massive moneymaker for Microsoft, generating $25.9 billion in its most recent quarter (the three months ended Dec. 31, 2023). That makes it the second-largest cloud services vendor globally, trailing only Amazon Web Services.

As AI usage ramps up, Microsoft stands to benefit from increased cloud services. Indeed, after decelerating some in 2022, cloud spending appears to be reaccelerating as organizations explore how AI can improve their processes and generate efficiencies.

In addition, Microsoft's longstanding partnership with OpenAI, the company behind ChatGPT, makes Microsoft a major player in the race to develop the next AI breakthrough.

Microsoft has multiple pathways to riches on the AI front. Given its outstanding track record and excellent management, Microsoft could be one AI stock that makes many fortunes going forward.

CrowdStrike: Safeguarding Fortunes with AI

Next is CrowdStrike (NASDAQ: CRWD). While nowhere near the size of Microsoft, CrowdStrike is still likely to make a number of fortunes in the coming years, thanks to its cutting-edge AI-powered cybersecurity offerings.

The company runs perhaps the premier cybersecurity platform available today, which protects networks, endpoints, and data through add-on modules that are tailored to its customers' needs...

Financially, CrowdStrike is rocking and rolling. In its most recent quarter (the three months ended Oct. 31, 2023), the company reported $786 million in revenue, up 35% from a year earlier. Moreover, annual recurring revenue (ARR)...

In short, this means CrowdStrike is growing its subscription base, through bringing in new customers and by upselling additional security modules to existing customers.

At any rate, the company's solid growth points to big things ahead, as the number of cyber threats continues to grow -- meaning CrowdStrike's growth curve could extend for many years to come.

Nvidia: Riding the AI Wave to Great Heights

Last, but by no means least, is Nvidia (NASDAQ: NVDA). Let's face it: No company or stock has ridden the AI wave better or to greater heights than Nvidia. The company is now America's third-largest public company...

Exploring the Meteoric Rise of Nvidia in the Tech MarketThe Unstoppable Ascendancy of Nvidia in the Tech Market