The short interest in the First Trust Capital Strength ETF (NASDAQ: FTCS) experienced a remarkable increase of 109.4% in December 2023. As reported on December 15, the total short interest reached 45,712 shares, significantly up from the 21,835 shares recorded on November 30. This surge indicates growing bearish sentiment among investors, with approximately 0.1% of the ETF’s stock currently sold short.
With an average daily trading volume of 540,264 shares, the days-to-cover ratio stands at just 0.1 days. This metric suggests that it would take less than one day for investors to cover their short positions, reflecting a relatively liquid market for this ETF.
Current Performance and Dividend Announcement
During midday trading on Friday, December 15, shares of the First Trust Capital Strength ETF dipped by $0.02, settling at $93.63. The trading volume for the day was 161,503 shares, lower than its average volume of 331,060 shares. Over the past year, the ETF has seen a low of $80.65 and a high of $94.37, indicating a solid performance trajectory.
The firm also announced an increase in its quarterly dividend. Shareholders of record on December 12 will receive a dividend of $0.2607, payable on December 31. This marks an increase from the previous quarterly payout of $0.25, bringing the annualized dividend to $1.04 and a yield of 1.1%.
Investment Strategy and Background
The First Trust Capital Strength ETF aims to track the performance of the Credit Suisse U.S. Value Index, which focuses on value stocks. To achieve this, the ETF typically invests at least 90% of its net assets in common stocks that comprise the index, which is maintained by Credit Suisse Securities (USA) LLC and Credit Suisse Group AG.
As of now, the ETF boasts a market capitalization of $8.38 billion, a price-to-earnings (P/E) ratio of 21.51, and a beta of 0.80, indicating a relatively stable investment compared to the broader market.
Investors are keenly observing the fluctuations and trends surrounding the First Trust Capital Strength ETF, especially in light of the recent increase in short interest and the enhanced dividend payout. Such developments may influence future investment strategies as market conditions evolve.
