Hedge Funds Increase Short Positions In US ETFs Amid Cooling Stock Market

According to Odaily, Goldman Sachs' institutional brokerage business reports that hedge funds have significantly increased their short positions in U.S.-listed ETFs across various asset classes, marking the largest rise in nearly four years. Vincent Lin, Co-Head of Goldman Sachs Prime Insights & Analytics, noted that short flows in U.S.-listed ETFs surged by 14.6% in December, the highest monthly increase since February 2021. While macro products like indices and ETFs saw net buying in the first half of the month, selling activities intensified towards the end of the year. The most shorted market areas included small and large-cap stocks, healthcare, and corporate bond ETFs.