Principal U.S. Mega-Cap ETF Short Interest Ratio and Short Volume

Short interest is the volume of Principal U.S. Mega-Cap ETF shares that have been sold short but have not yet been closed out or covered. As of May 28th, traders have sold 57,500 shares of USMC short.

The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. Principal U.S. Mega-Cap ETF currently has a short interest ratio of 1.0.

Principal U.S. Mega-Cap ETF saw a increase in short interest in May. As of May 28th, there was short interest totaling 57,500 shares, an increase of 202.6% from the previous total of 19,000 shares. Changes in short volume can be used to identify positive and negative investor sentiment. Investors that short sell a stock are betting that its price will decline in the future. An increase in short sale volume suggests bearish (negative) sentiment among investors. A decrease on short sale volume suggests bullish (positive) sentiment.

As of the most recent reporting period, the following stocks had the largest short interest positions: Tesla, Inc. ($25.04 billion), AstraZeneca PLC ($7.50 billion), Aon plc ($7.09 billion), Square, Inc. ($6.95 billion), Analog Devices, Inc. ($6.90 billion), Advanced Micro Devices, Inc. ($6.79 billion), Charter Communications, Inc. ($6.18 billion), S&P Global Inc. ($5.54 billion), Sea Limited ($4.96 billion), and Wayfair Inc. ($4.25 billion). View all of the most shorted stocks.

Short selling USMC is an investing strategy that aims to generate trading profit from Principal U.S. Mega-Cap ETF as its price is falling. Principal U.S. Mega-Cap ETF's stock is trading up $0.22 today. To short Principal U.S. Mega-Cap ETF stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Short sellers are betting that Principal U.S. Mega-Cap ETF will decline in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the trader's profit.

A short squeeze for Principal U.S. Mega-Cap ETF occurs when it has a large amount of short interest and its stock appreciates in price. This forces short sellers to cover their short interest positions by buying actual shares of USMC, which in turn drives the price of the stock up even further.

Short interest is typically published by a stock exchange once per month. However, NASDAQ publishes a report for U.S. stocks, including USMC, twice per month. The most recent reporting period available is May, 28 2021.