The short interest in the First Trust Capital Strength ETF (NASDAQ: FTCS) experienced a dramatic increase of 109.4% in December, reaching a total of 45,712 shares by December 15. This surge marks a notable rise from the 21,835 shares reported at the end of November. With an average daily trading volume of 540,264 shares, the current days-to-cover ratio stands at 0.1 days, indicating a relatively low level of short selling against the ETF, which comprises approximately 0.1% of the total shares outstanding.
Trading activity for FTCS saw a slight decline, with shares dropping by $0.02 to $93.63 during mid-day trading on Friday. A total of 161,503 shares changed hands, compared to the ETF’s average trading volume of 331,060. Over the past year, the ETF has fluctuated between a low of $80.65 and a high of $94.37. Currently, the 50-day simple moving average is $92.25, while the 200-day simple moving average is $92.08. The ETF has a market capitalization of $8.38 billion, a price-to-earnings (P/E) ratio of 21.51, and a beta of 0.80.
Dividend Announcement and Fund Overview
In addition to the increase in short interest, the First Trust Capital Strength ETF has announced a quarterly dividend of $0.2607 per share, which will be distributed on December 31, 2023. Shareholders of record as of December 12 will receive this dividend, with the ex-dividend date also set for December 12. This reflects an increase from the previous quarterly dividend of $0.25, representing an annualized dividend of $1.04 and a yield of 1.1%.
The First Trust Capital Strength ETF, formerly known as the First Trust Strategic Value Index Fund, aims to track the performance of the Credit Suisse U.S. Value Index, which is developed and maintained by Credit Suisse Securities (USA) LLC and Credit Suisse Group AG. The ETF typically invests at least 90% of its net assets in common stocks that comprise this equity index.
As market conditions evolve, the substantial rise in short interest may reflect heightened investor sentiment and strategic positioning within the ETF. The combination of a strong dividend announcement and the ETF’s performance metrics will likely continue to attract attention from both retail and institutional investors.
