ETF Short Interest Jumps
Several US ETFs report sharp rise in short interest, yet overall bearish bets remain limited
Anonymous
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For the Nomura Focused Large Growth ETF (LRGG), the May short-interest spike to 3,058 shares also produced a reported “short-interest ratio” of 0.0 days and said “0.0% of the company’s stock are sold short.” The article also listed specific institutional position changes, including Horizon Wealth Management LLC taking a new stake (about $2.572M) and Proactive Wealth Strategies LLC increasing its position by 98.1% (to 36,787 shares).
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For the Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ), the report said days-to-cover was “presently 3.0 days,” while trading was extremely light (7 shares exchanged vs. an average daily volume of 4,125). It also described the fund’s strategy: USNZ tracks a “tier-weighted index” of large- and mid-cap U.S. stocks selected and weighted using ESG criteria aligned with the Net Zero Investment Framework and the Paris Climate Agreement; the fund was launched June 28, 2022 and is managed by Xtrackers.
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For the Capital Group New Geography Equity ETF (CGNG), the article specified a days-to-cover ratio of “presently 1.2 days” alongside shorting at about 2.2% of shares. It also enumerated hedge fund/investor activity, including EverSource Wealth Advisors LLC boosting its position by 4,589.6% (to 2,251 shares worth about $72,000) and Transamerica Financial Advisors LLC increasing holdings by 68.9% (to 3,709 shares worth about $118,000).
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For the Indexperts Gorilla Aggressive Growth ETF (RILA), the report described the fund as “an actively managed ETF” seeking long-term capital appreciation by investing in “US growth stocks of any market capitalization,” launched Jan. 2, 2025 and issued by Indexperts. It also gave the specific short-interest ratio/positioning detail: short interest stood at 3,042 shares (May 29) with a “presently 1.4 days” short-interest ratio and approximately 0.1% of shares sold short.
Short interest in the First Trust Industrials/Producer Durables AlphaDEX Fund (FXR) surged 581% in May, jumping to 18,054 shares as of May 29, according to MarketBeat. The spike was part of a broader wave of short-interest increases across several niche U.S.-listed ETFs, though absolute short positions remained small in most cases.
FXR, which trades around $85.87 and uses a quant-based method to pick industrial stocks, saw its short interest rise sharply in a single two-week period. Analysts point to tariff fears and a tough rate environment as likely drivers of the bearish bets on the industrial sector.
FXR Short Bets Jump as Industrial Sector Faces Pressure
The First Trust Industrials/Producer Durables AlphaDEX Fund tracks a slice of the U.S. economy that is sensitive to trade policy. According to ETF Database, FXR weights stocks by growth and value factors rather than market cap, giving it exposure to names like Rocket Lab USA and Comfort Systems USA. That makes it a popular tool for traders with strong views on specific industrial sub-sectors.
The 581% jump in short interest — from a small base to 18,054 shares — reflects what Zacks Investment Research calls a "radical market shift" in early 2026. Tariff fears have weighed on producer durables all through Q2. If that pressure continues, the industrials segment could signal a broader cooling in U.S. capital goods spending for the rest of the year.
No Fed Rate Cuts Expected, Squeezing Growth ETFs Like LRGG and RILA
Nomura analysts issued a high-profile forecast on May 28 predicting no Fed rate cuts in 2026, citing sticky inflation. That outlook hit growth-focused ETFs hard. The Nomura Focused Large Growth ETF (LRGG) saw short interest climb to 3,058 shares, and its price slipped to around $27.35. The Online Investor noted that LRGG entered "oversold territory" in late May, touching a low of $26.52.
The Indexperts Gorilla Aggressive Growth ETF (RILA), launched January 2, 2025, ended May with 3,042 shares short — about 0.1% of its float — and a days-to-cover ratio of 1.4 days. The fund holds just $44 million in total assets, according to AAII, meaning even small short positions can add volatility for retail investors.
Institutions Still Buying Even as Short Sellers Circle
Despite the rise in short bets, big institutions are adding to their long positions. Horizon Wealth Management LLC opened a new stake in LRGG worth about $2.572 million. Proactive Wealth Strategies LLC boosted its LRGG position by 98.1%, bringing holdings to 36,787 shares. That tug-of-war between short sellers and long-term buyers suggests the bearish moves are tactical, not a signal of deep structural concern.
The same pattern showed up in Capital Group New Geography Equity ETF (CGNG), which recorded the largest absolute short interest of the group at 1,287,052 shares — about 2.2% of its float — with a days-to-cover ratio of 1.2 days. Yet EverSource Wealth Advisors LLC grew its CGNG stake by 4,589.6%, and Transamerica Financial Advisors LLC raised its holdings by 68.9% to 3,709 shares worth roughly $118,000, per MarketBeat.
ESG Fund USNZ Sees Tiny Short Spike on Near-Zero Volume
The Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) recorded a sharp percentage jump in short interest, ending May with 1,098 shares short and a days-to-cover ratio of 3.0 days. The fund tracks large- and mid-cap U.S. stocks chosen using ESG criteria tied to the Paris Climate Agreement. It was launched June 28, 2022 and is managed by Xtrackers, according to Xtrackers.
Trading in USNZ was almost nonexistent on May 29 — just 7 shares changed hands against an average daily volume of 4,125. The fund's one-year return of 15.06% trails the S&P 500's 17.80% over the same period. Still, sustainability analysts at Schroders argue ESG funds remain essential "satellite positions" for institutions focused on long-term climate risk, regardless of short-term volume dips.
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