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Vermont Trader

Interesting... i'd be interested to see the least shorted too.

dj

They are upset that the little people can cover themself, unlike the last bear(2001).

Dave

this may be a stupid question, but how is it possible to have short interest over 100% of shares outstanding?

GTM

Great work Bespoke!

To answer DJ's question it's called naked shorting. Here is a write-up on it:

http://www.gamingthemarket.com/2008/06/mechanics-of-naked-shorting.html

dj

Ya GTM,like they haven't been using naked "Longs" for ever? Just like the abcp,cdo's it's all ok until all goes to the......Mr Cox is a wallstreet bag man.

W P Gardner

When an ETF has over 100% short interest it simply means that there are more shorts on the ETF than longs. The ETF managers can borrow the shares of the underlying stocks to manage this short position. They don't have to be naked shorts. But I can't prove they are not. There are also other ways to hedge it in some cases, such as using futures contracts.

I am short XLF. I am surprised that it is not on the list.

Pecked to Death by Ducks

Is there something in the ETF mandate that guarantees that an investment in the ETF will be invested as advertised?

GTM

That's a great question. Each ETF can be different in the way they set their NAV and create returns. Some of them don’t trade actual stock, but are based on complex derivatives. For example, SKF does not short a single financial stock. Each ETF's prospectus will vaguely describe the methods used. Their goal is “similar daily return characteristics as xxx.” They explicitly do not guarantee correlation. Basically there are no guarantees.

Here is a list of all the ProShares holdings:
http://www.proshares.com/includes/pfdlyhld.csv

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