How is much GME influencing XRT?
Based on the chart is would seem to be significantly!
How can one stock controlling only 1.52% of XRT have such an influence? Well if a stock goes from $7 to $600 then its impact on and ETF can be extreme.
Or are the professional traders using XRT as a stealth short for GME?
Shorting XRT then buying the other symbols in the ETF?
How can they get 642% short?
For every short seller there is a buyer. The short seller will borrow the stock to make delivery to that buyer. Theoretically, that buyer once it has the shares can loan those shares in the market. The standard company float does not account for the fact that two buyers (the original beneficial owner and the person who bought shares from the short seller) actually own the stock.
With ETF’s there’s another little twist. ETF’s are created and redeemed by an agent bank. The shares outstanding are the total number of creations that the agent has done to that point. As the agent creates more, the shares outstanding increases. As market participants present ETF’s back to the agent to redeem, the shares outstanding decreases. In addition, the same as above occurs where the shares are recycled and loaned over and over again. When buyers of the stock present them for redemption, the shares outstanding drops and the SI% skyrockets.
For information on the S3 Partners Short Interest dataset or any of our Datasets either…
Email Sales@CloudQuant.com, Make an appointment to speak to a CloudQuant Representative, or fill in the form on the right and we will get in touch.
See also our Data Catalog and our Repository of White Papers.