Rising Short Interest
June Reports Reveal Dramatic Surge in Short Interest Across Multiple ETFs
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Key Points
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In addition to the surge in short interest, The Central and Eastern Europe Fund traded up to $20.91 on Thursday on volume of 12,003 shares (below its 26,025 average), with institutional ownership at 34.41%.
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Calamos Long/Short Equity & Dynamic Income Term Trust disclosed a monthly dividend of $0.14 per share, with an ex-dividend date of June 12 and a payment on June 22, yielding about 12.9% annualized.
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Cambridge Acquisition Corp is a SPAC whose units typically consist of common stock and warrants or fractional warrants, reflecting its structure as a blank-check company seeking a business combination.
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Bank of China Ltd. saw short interest rise to 61,078 shares (up 782%), with a 0.9-day to-cover; about 0.0% of shares are short sold and Zacks Research has given it a Hold rating.
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Capital Group Core Plus Income ETF (CGCP) jumped to 4,098,119 short shares (up 1,450.9%), with a 2.6-day cover and roughly 1.2% of its shares shorted; notable new or increased positions from several institutions include Fifth Third Bancorp, Central Pacific Bank Trust Division, US Bancorp DE, Bessemer Group Inc., and Clearstead Advisors LLC.
Short interest surged dramatically across a range of funds and ETFs as of June 15, 2026, with percentage increases ranging from 782% to over 2,196%, according to MarketBeat. The biggest mover by share count was the Capital Group Core Plus Income ETF (CGCP), where short interest jumped 1,450.9% to over 4 million shares — a signal that large institutions are hedging their fixed-income bets even as they buy in.
TradingView reported that total NYSE short interest rose 2.9% to 22.608 billion shares in mid-June. Analysts say the spike across these specific funds points less to outright bearishness and more to a sophisticated hedging operation by institutional money managers.
CGCP and CEE See Sharpest Short Interest Spikes
The Capital Group Core Plus Income ETF (CGCP) recorded short interest of 4,098,119 shares — up 1,450.9% from May 31 — with a days-to-cover ratio of 2.6, according to MarketBeat. About 1.2% of its float is now shorted. Several institutions recently added long positions at the same time, including Fifth Third Bancorp, US Bancorp DE, and Bessemer Group Inc. That pattern — buying long while also shorting — suggests a classic hedging trade, not a bear raid.
The Central and Eastern Europe Fund (CEE) saw short interest climb 1,183% to 16,225 shares, with a days-to-cover of just 0.5. The fund traded at $20.91 on Thursday on volume of 12,003 shares, below its average of 26,025. Institutional ownership sits at 34.41%. Bloomberg noted that "Renewed Buy Europe" sentiment has gained traction in June, suggesting some traders may be using CEE to hedge against geopolitical tail risks in Ukraine or the Middle East.
Calamos Trust Shorts Spike Around Ex-Dividend Date
Short interest in the Calamos Long/Short Equity & Dynamic Income Term Trust (CPZ) surged 1,304% to 19,679 shares as of June 15, with a days-to-cover ratio of just 0.3, according to Calamos Investments. The fund's ex-dividend date was June 12 — three days before the short interest snapshot — and it paid a monthly dividend of $0.14 per share on June 22, yielding about 12.9% annualized.
The timing is telling. Traders sometimes short a fund just before its ex-dividend date to hedge the expected price drop after the payout. With a days-to-cover ratio below 1.0, any positive news could trigger a rapid short squeeze — meaning bears would scramble to buy back shares fast, pushing the price up sharply.
Bank of China and CAQUU Round Out the Surge
Bank of China (BACHY) saw short interest rise 782% to 61,078 shares, with a days-to-cover of 0.9. Despite the spike, Zacks Research rates the stock a Hold, and roughly 0.0% of its total shares are short sold — meaning the absolute short position remains tiny relative to its size. The bank announced a $0.31 dividend for shareholders of record as of July 2.
Cambridge Acquisition Corp (CAQUU), a blank-check SPAC that raised $230 million in its February 2026 IPO, recorded a 2,196% jump in short interest to just 1,263 shares, leaving a days-to-cover of 2.7. While the absolute number is small, the percentage spike reflects growing skepticism toward pre-deal SPACs. Investors are increasingly cautious while waiting for a high-quality acquisition target to emerge, according to MarketBeat.
Hedging, Not Panic: What the Data Actually Means
Capital Group's Head of ETFs Scott Davis noted that financial advisors are pushing hard for active ETFs like CGCP to meet client income needs, according to ETF.com. That demand has driven institutional buying — but those same buyers are now layering on short positions as insurance against a "higher-for-longer" inflation scenario. The Fed's 2026 rate-cut cycle faces pressure from persistent inflation, making fixed-income hedges more attractive.
The key takeaway: days-to-cover ratios below 1.0 for CEE and CPZ mean there is very little room for bears to exit if the market moves against them. A single positive macro surprise — a cooler inflation print or a Fed signal — could spark sharp short squeezes in both funds. This is a market bracing for volatility, not one calling for a crash.
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