Short Interest in First Trust Europe ...

Short Interest Drops 18.3% in First Trust Europe AlphaDEX Fund (NASDAQ:FEP) — March Update

Short interest in First Trust Europe AlphaDEX Fund (NASDAQ:FEP) fell 18.3% in March to 74,152 shares. Read analysis on causes, investor impact and outlook.

Short interest in the First Trust Europe AlphaDEX Fund (NASDAQ:FEP) saw a notable decline during March, signaling a shift in bearish positioning among traders. As of March 13, short interest totaled 74,152 shares, down 18.3% from the February 26 total of 90,810 shares. For context, approximately 1.0% of the fund’s shares were sold short, a relatively small slice of overall supply.

Why this short interest drop matters
A significant reduction in short interest can indicate that investors are covering positions, reducing bets against the ETF, or reassessing risk. For FEP — an exchange-traded fund focused on European equities — this drop could reflect changing views on European market momentum, currency dynamics, or sector-specific developments within the fund’s holdings.

Interpreting the numbers
Although an 18.3% decline looks meaningful, the absolute level of short interest in FEP remains modest. At roughly 1.0% of shares sold short, the fund doesn’t appear to be a primary target for aggressive short sellers. That means the price impact from short covering may be limited compared with a security that carries a much higher short interest percentage. Investors should pair short interest data with other metrics such as trading volume, net flows, and underlying index performance to form a fuller picture.

What investors should watch
- Short interest trend: Watch whether the decline continues in subsequent reporting periods or reverses, which could signal renewed bearish sentiment.
- Fund flows and volume: Increasing inflows or higher trading volume can support higher prices, while outflows may confirm investor caution.
- European macro and earnings: Economic data, central bank moves, or earnings from major constituents can quickly change sentiment for an ETF like FEP.

Bottom line
The March drop in short interest for the First Trust Europe AlphaDEX Fund (NASDAQ:FEP) suggests fewer investors are wagering against the ETF, but the small share percentage means this change alone is unlikely to drive major price moves. Investors should treat the decline as one informative data point and combine it with fund flows, market trends, and their investment goals before making decisions. Stay updated on future short interest reports and consult a financial advisor for tailored guidance.

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