MutualFundWire.com: Hedgies Love Shorting ETFs
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Thursday, August 22, 2013

Hedgies Love Shorting ETFs


ETFs' short positions are surging now that hedge funds have figured out how useful the investments are as a hedging tool, Barrons' Brendan Conway writes. Goldman Sachs' [profile] portfolio strategists studied what hedge funds are buying and selling and found out that hedge funds' short positions in ETFs increased by almost $7 billion in comparison to the end of March, Conway reports.

The use of ETFs may in some ways rival the use of single stocks as shorts, Conway writes. ETF shorts make up almost a quarter of the value of those hedge funds' single-short positions, Conway writes. Hedge funds gave $1 billion in shorts against Vanguard [profile]FTSE Emerging Markets and State Street [profile] SPDR Gold Trust had the second largest increase in shorts among hedge funds.

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