LODI Short Interest Plummets 76.8% in December — What Investors Should Know
AAM SLC Low Duration Income ETF (NYSEARCA:LODI) short interest plunged 76.8% in December to 1,628 shares, cutting days-to-cover and bearish exposure now.
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Short interest in the AAM SLC Low Duration Income ETF (NYSEARCA:LODI) fell sharply in December, signaling a big reduction in bearish bets against the fund. According to exchange data, short interest dropped 76.8% from 7,004 shares on December 15 to just 1,628 shares as of December 31. That decline stands out for an ETF that typically trades in modest volumes.
With an average trading volume of 4,406 shares, LODI’s short-interest-to-volume ratio (days to cover) sits at roughly 0.37 days. In plain terms, it would take less than a trading day, on average, for short sellers to cover their positions based on normal liquidity. A low days-to-cover figure like this often reflects minimal short exposure and lower risk of a sudden short squeeze compared with names that carry much higher short interest relative to daily volume.
Why did short interest drop so dramatically? Several factors can drive a decline: short sellers closing positions after reassessing risk, lower perceived downside for the ETF, or broader shifts in market sentiment toward short-duration fixed-income funds. LODI is positioned as a low-duration income vehicle, which can attract investors seeking yield with lower interest-rate sensitivity. If sentiment toward that strategy improved in December, bearish traders may have exited quickly.
What this means for ETF investors: a sharp reduction in short interest typically tempers immediate downward pressure from short selling, but it is not a standalone indicator of future performance. ETF investors should consider the drop in the context of net flows, underlying holdings, interest-rate trends, and broader fixed-income market dynamics. For those tracking market sentiment, the decline in short interest is a useful signal that bearish activity has cooled, at least temporarily.
Keep watching trading volume, fund flows, and interest-rate news to understand whether the December move represents a short-term adjustment or the start of a longer trend. As always, investors should combine short-interest data with a full review of the ETF’s strategy and risk profile before making portfolio decisions. For NYSEARCA:LODI, the December shift is notable — but it’s one data point among many in evaluating the fund’s outlook.
Published on: January 16, 2026, 7:05 am
