Fidelity MSCI Utilities Index ETF (FUTY) Short Interest Falls 78.8% in December
Fidelity MSCI Utilities Index ETF (FUTY) short interest plunged 78.8% in December to 29,205 shares. Average volume suggests about 0.11 days to cover for FUTY
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Fidelity MSCI Utilities Index ETF (NYSEARCA:FUTY) saw a dramatic reduction in short interest during December, signaling notable short covering activity in the utilities ETF. As of December 31, short interest totaled 29,205 shares, a 78.8% decline from the December 15 level of 137,910 shares.
Based on an average daily volume of 255,334 shares, the short interest equates to roughly 0.11 days to cover — an unusually low short-interest ratio. That short-interest metric, often called days-to-cover, gives investors a quick sense of how long it could take for short sellers to unwind positions if buying pressure ramps up.
Why the sharp drop in FUTY short interest? Several factors may be at play. Year-end positioning frequently leads traders to reduce short exposure, either to lock in profits or to minimize tax and reporting complications. Short covering can also reflect shifting sentiment around the utilities sector — a defensive group that often attracts capital in uncertain markets. Additionally, the ETF’s underlying MSCI Utilities Index holdings, dividend dynamics, or a change in liquidity could have encouraged shorts to close their positions.
What this means for investors: A steep decline in short interest does not guarantee a rally, but it does reduce the potential for a short-squeeze-driven spike in FUTY’s price. For long-term investors, monitoring fundamentals — utility earnings, interest rate movements, and macroeconomic factors — remains more important than short-interest swings. For traders, the rapid change in short interest underscores the need to watch volume patterns, ETF flows, and sector news.
Investors tracking Fidelity MSCI Utilities Index ETF (FUTY) should continue to watch short-interest reports, average daily volume, and quarterly portfolio updates from Fidelity. Together these data points help clarify whether the December pullback in shorts was a temporary move or part of a broader shift in sentiment toward utilities ETFs.
In short, FUTY’s 78.8% decline in short interest in December highlights significant short covering and a very low days-to-cover figure, but investors should pair this signal with fundamental and market context before making trading decisions.
Published on: January 16, 2026, 2:05 pm
