SOXQ Short Interest Drops 34.6% — Invesco PHLX Semiconductor ETF Update
Invesco PHLX Semiconductor ETF (SOXQ) short interest dropped 34.6% in December to 364,445 shares. Explore what this decline means for investors and traders.
Page views: 2
Invesco PHLX Semiconductor ETF (NASDAQ: SOXQ) experienced a notable decrease in short interest at the end of December. As of December 31, short interest totaled 364,445 shares, down 34.6% from the December 15 figure of 556,900 shares. That decline leaves roughly 2.5% of the ETF’s outstanding shares sold short, signaling a material shift in bearish positioning.
Short interest is a commonly watched metric that tracks the number of shares sold short but not yet covered or closed out. For ETFs like the Invesco PHLX Semiconductor ETF, a falling short interest figure often indicates that traders are covering their positions—either because sentiment toward the semiconductor sector is improving or because short sellers are reducing exposure ahead of expected volatility. The SOXQ short interest decrease suggests fewer market participants are betting on near-term downside for semiconductor stocks within this basket.
Why this matters to investors: semiconductor ETFs are sensitive to global demand, supply-chain dynamics, and chipmakers’ earnings reports. A substantial pullback in short interest—like the 34.6% drop seen for SOXQ—can contribute to reduced downward pressure on the ETF’s price and may reflect growing confidence in the sector or active position adjustments by hedge funds and other institutional traders. However, a lower short-interest percentage does not guarantee a sustained rally; it simply provides insight into market positioning.
What to watch next: monitor subsequent short interest reports, trading volume, and the ETF’s holdings to see whether the trend continues. Keep an eye on key chipmakers’ earnings, global semiconductor demand indicators, and macroeconomic news that could influence market sentiment. For more granular context, compare SOXQ’s short interest changes with those of peer semiconductor ETFs and underlying component stocks.
Bottom line: The December short-interest decline for the Invesco PHLX Semiconductor ETF (SOXQ) is a noteworthy development that may reflect reduced bearish sentiment in the semiconductor space. Investors should interpret this data point as part of a broader research process—combining fundamentals, technicals, and risk management—before making allocation decisions.
Published on: January 17, 2026, 11:05 am
