Bringing you live news and features since 2006 

Professional investors increasingly sell equity markets short

RELATED TOPICS​

With equity indices at medium-term or all-time highs, there has been a noticeable increase in professional investors going short, or betting against the market, according to research from exchange-traded products provider Boost ETP.

 
In May, the research found, investors in exchange-traded products reduced long positions and increased short positions. In total, USD4bn flowed into short positions at the expense of long positions (bets that the market will rise).
 
Investors are especially bearish on European and US stock markets. During May, for example, most European equity indices suffered outflows from long ETPs and inflows into short ETPs.
 
Continuing inflows into short positions show how investors are using these products to either hedge their portfolios or position themselves to profit from expected falls in markets. 
 
Nik Bienkowski, chief executive of Boost ETP, says: “During May, the sophisticated investors who use exchange traded products became increasingly bearish. They are going short either to hedge their portfolios or to position themselves to benefit from market falls. In May, short ETPs experienced inflows at the expense of outflows from long ETPs, which suggests more sophisticated investors are starting to think the market may have topped out. In total, around 58 per cent of global short and leveraged ETPs assets are now short."

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Jigna Gibb, Bloomberg
Bloomberg Indices has recently hired Jigna Gibb as Head of Commodities and Crypto Index Products, to lead its commodities and...
Robert Minter, director of ETF investment strategy at abrdn takes a look at passive investing in commodities and shares his...
Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
ETFs
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by