FEM Short Bets Fall Sharply in September
Short interest in First Trust Emerging Markets AlphaDEX Fund dropped 78% from mid-September to 13,828 shares by September 30. That represented roughly 0.1% of shares sold short and about 0.1 days of average trading volume. The ETF traded at $33.16, up 1.3%, and had a quarterly dividend of $0.2849 per share.
FEM is a First Trust-run exchange-traded fund introduced in April 2011 that aims to mirror the NASDAQ AlphaDEX EM index. Bearish bets on it fell from 62,848 shares on September 15 to 13,828 by September 30, a 78% decrease, equal to roughly 0.1% of shares and 0.1 days of typical volume.
The ETF changed hands at $33.16, up 1.3%, within a 52-week span of $25.85 to $35.61. Market value was about $815.74 million; P/E 9.20, beta 0.62. It declared a quarterly distribution of $0.2849, up from $0.1899, for a $1.14 annualized payout and 3.4% yield.
The sharp drop in short interest may mainly affect FEM shareholders, traders, and income-focused investors. Reduced bearish positioning could reflect improved sentiment, potentially influencing liquidity and volatility for those using the ETF for emerging-market exposure. The higher distribution may appeal to retirees or others seeking income, though emerging-market funds can carry currency, geopolitical, and valuation risks. This is not investment advice.