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FDTS Short Interest Falls 24.7% in March — First Trust Developed Markets ex-US Small Cap AlphaDEX Fund Update

FDTS short interest fell 24.7% in March to 488 shares. Read our NASDAQ FDTS short interest update and what the change signals for investors and traders.

Short interest in the First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (NASDAQ: FDTS) declined notably in March, signaling a reduction in bearish positioning among short sellers. As of March 31, short interest totaled 488 shares, down 24.7% from 648 shares reported on March 15.

This decrease to 488 shares represents a modest absolute change but a significant percentage drop over a two-week span. Currently, short interest accounts for roughly 0.2% of the fund’s shares, indicating that only a small portion of outstanding shares is being used to place short bets against FDTS. For many investors, this low short-interest level suggests limited downside conviction from the market’s short-selling community.

Why the decline matters: a falling short interest figure can point to improving investor sentiment or a reduction in speculative activity. When short sellers close positions, it can reflect an expectation that price weakness has passed or that potential gains from shorting are no longer attractive. Conversely, with FDTS’s short interest already a small fraction of total shares, the change may simply reflect routine position adjustments rather than a major shift in outlook.

What investors should consider: FDTS tracks developed markets ex-U.S. small-cap stocks using First Trust’s AlphaDEX methodology. Short interest is only one indicator among many—liquidity, fund flows, underlying market performance, and broader macro factors should also inform decisions. Low short interest can reduce the likelihood of a sharp short squeeze, but it doesn’t guarantee price stability.

Actionable next steps: investors tracking FDTS should monitor upcoming short interest reports, trading volume, and any news affecting developed-market small caps. Compare short-interest trends across similar funds to gauge whether this decline is specific to FDTS or part of a broader sector move. As always, consider consulting a financial advisor to align any trading decisions with your risk tolerance and investment goals.

Bottom line: The March drop in FDTS short interest to 488 shares (a 24.7% decline) highlights a pullback in bearish positioning, but the small absolute size and 0.2% representation of shares mean the signal should be weighed alongside other market data before drawing firm conclusions.

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