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30 ETFs With the Highest Short Interest Ratios [View article]
The Bespoke commentary is founded on a fundamental misunderstanding of what ETFs are - and are not. With stocks high short interest or percentage of outstanding shares held short reveals potential for a snap rise if all at once the shorters have to cover their positions by buying back their stock. The ratio is meaningful in a stock where the shares in question are all there are. The ratio is not meaningful in a typical ETF where the shorts only represent a tiny amount of the underlying stocks (the index) in question.
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The Bespoke commentary is founded on a fundamental misunderstanding of what ETFs are - and are not. With stocks high short interest or percentage of outstanding shares held short reveals potential for a snap rise if all at once the shorters have to cover their positions by buying back their stock. The ratio is meaningful in a stock where the shares in question are all there are. The ratio is not meaningful in a typical ETF where the shorts only represent a tiny amount of the underlying stocks (the index) in question.
Nov 26 13:24 pm
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All Comments by Will McClatchy at ETFzone.com »30 ETFs With the Highest Short Interest Ratios [View article]
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