The short interest in the First Trust Capital Strength ETF (NASDAQ: FTCS) experienced a significant increase of 109.4% in December 2023. As of December 15, the total short interest reached 45,712 shares, up from 21,835 shares at the end of November. This surge indicates growing bearish sentiment among investors, as approximately 0.1% of the ETF’s stock is currently sold short.
The average daily trading volume for FTCS stands at 540,264 shares, resulting in a days-to-cover ratio of 0.1 days. This metric suggests that it would take just a fraction of a day for all short positions to be covered if buying were to resume.
Market Performance and Dividend Announcement
During midday trading on Friday, FTCS shares dipped by $0.02, bringing the stock price to $93.63. This decline occurred amid the exchange of 161,503 shares, well below the ETF’s average volume of 331,060 shares. Over the past year, FTCS has fluctuated between a low of $80.65 and a high of $94.37. The ETF maintains a market capitalization of $8.38 billion, with a price-to-earnings ratio of 21.51 and a beta of 0.80.
In addition to trading movements, the First Trust Capital Strength ETF announced an increase in its quarterly dividend. Investors of record on December 12 will receive a dividend of $0.2607, payable on December 31. This marks an increase from the previous quarterly dividend of $0.25, resulting in an annualized dividend of $1.04 and a yield of 1.1%.
Investment Strategy and Index Tracking
The First Trust Capital Strength ETF, previously known as the First Trust Strategic Value Index Fund, aims to replicate the performance of the Credit Suisse U.S. Value Index, which is powered by HOLT. Developed and maintained by Credit Suisse Securities (USA) LLC and Credit Suisse Group AG, the index serves as a benchmark for the ETF’s investment strategy.
The fund typically allocates at least 90% of its net assets to common stocks that are components of the index. This focus on value stocks aligns with the ETF’s objective to deliver returns that reflect the index’s price and yield, minus fees and expenses.
As investors continue to evaluate the implications of the rising short interest and dividend increase, the First Trust Capital Strength ETF remains a focal point in the market. With its strategic investments and recent performance data, it offers valuable insights for those interested in equity index tracking and market dynamics.
