First Trust India NIFTY 50 Equal Weight ETF Sees 43.5% Surge in Short Interest

The First Trust India NIFTY 50 Equal Weight ETF (NASDAQ:NFTY) has reported a notable increase in short interest, rising by **43.5%** in October. As of **October 15, 2023**, short interest stood at **3,300 shares**, up from **2,300 shares** on September 30. This uptick indicates growing bearish sentiment among investors regarding the ETF’s performance. Currently, approximately **0.1%** of the ETF’s shares are sold short, with an average daily trading volume of **19,300 shares**, resulting in a days-to-cover ratio of **0.2 days**.

Investor Activity and Market Performance

Several large investors have adjusted their stakes in the First Trust India NIFTY 50 Equal Weight ETF recently. Notably, **SBI Securities Co. Ltd.** significantly increased its position by an astounding **4,518.2%** in the first quarter, acquiring **508 shares** valued at around **$28,000** after purchasing an additional **497 shares**.

In a similar move, **Hazlett Burt & Watson Inc.** raised its stake by **232.0%**, now holding **664 shares** worth approximately **$37,000** following a purchase of **464 shares**. Other significant investments include **Ameritas Advisory Services LLC**, which acquired a new position valued at about **$69,000** in the second quarter, and **NewEdge Advisors LLC**, which also entered the market with an investment of around **$127,000** in the first quarter.

**Coppell Advisory Solutions LLC** further expanded its holdings by **281.7%**, bringing its total to **3,580 shares**, valued at **$207,000** after acquiring an additional **2,642 shares** during the same period. These movements reflect a broader trend among hedge funds and institutional investors to position themselves strategically in the ETF market.

Current Trading Status

As of the latest trading session, the First Trust India NIFTY 50 Equal Weight ETF is priced at **$58.67**, experiencing a slight decrease of **0.5%**. The ETF’s **50-day moving average** is **$58.25**, while the **200-day moving average** is **$58.32**. Over the past year, the ETF has seen fluctuations, with a low of **$51.57** and a high of **$61.00**.

The fund, which has a market capitalization of **$187.74 million** and a price-to-earnings ratio of **24.33**, generally exhibits low volatility with a beta of **0.45**. This data underscores the ETF’s stability in a fluctuating market environment.

The First Trust India NIFTY 50 Equal Weight ETF tracks an equally weighted index consisting of the **50 largest** and most liquid equity securities in India. Launched on **February 14, 2012**, the fund aims to provide investors with diversified exposure to the Indian market.

As investors continue to evaluate their positions, the significant rise in short interest may signal varying perspectives on the ETF’s future performance, reflecting both caution and strategic planning in a rapidly evolving market.