The short interest in the Global X Russell 2000 ETF (NYSEARCA: RSSL) increased significantly in January, rising by 67.9%. As of January 30, 2024, the total number of shares sold short reached 15,877, up from 9,457 shares on January 15. This uptick indicates a growing bearish sentiment among investors regarding the ETF’s performance.
The days-to-cover ratio, which measures how long it would take to cover all short positions based on average trading volume, currently stands at 2.1 days. With an average daily trading volume of 7,555 shares, this metric suggests a notable level of interest in shorting the ETF. Presently, only 0.1% of the total shares are sold short.
Current Stock Performance and Investor Activity
On the trading front, the Global X Russell 2000 ETF opened at $102.97 on Monday. The ETF boasts a market capitalization of $1.40 billion, a price-to-earnings (P/E) ratio of 16.96, and a beta of 1.40, indicating a relatively high level of market volatility compared to the broader market.
The ETF’s performance over the past year has shown significant fluctuations, with a one-year low of $67.67 and a one-year high of $106.37. The 50-day moving average is currently $101.16, while the 200-day moving average is $96.36, illustrating a trend of increasing value over time.
Institutional trading has also been active, with several large investors making notable moves. In the second quarter, Flow Traders U.S. LLC acquired a new position valued at $461,000. Meanwhile, LPL Financial LLC raised its stake in the ETF by 243.7% in the fourth quarter, now owning 39,184 shares worth $3,785,000.
Additionally, Bank of Montreal increased its holdings by 84.7%, bringing its total to 9,637 shares valued at $931,000. Jane Street Group LLC also entered the market during the first quarter with an investment estimated at $773,000.
About the Global X Russell 2000 ETF
The Global X Russell 2000 ETF, launched on June 4, 2024, is designed to track the Russell 2000 RIC Capped Index. This index includes small-cap U.S. equities and employs a quarterly capping mechanism to ensure compliance with regulatory concentration requirements. The ETF provides investors with exposure to a diverse range of small-cap stocks, making it an appealing option for those looking to invest in this segment of the market.
As interest in the Global X Russell 2000 ETF continues to grow, both short-selling and institutional buying activity reflect a dynamic landscape for investors seeking opportunities in small-cap equities.
