Dimensional US Real Estate ETF Sees 53% Drop in Short Interest

The short interest in the Dimensional US Real Estate ETF (NYSEARCA: DFAR) experienced a significant decline of 53.1% in February. As of February 13, 2023, the total short interest stood at 74,222 shares, a sharp drop from 158,099 shares reported on January 29, 2023. This reduction indicates a shift in investor sentiment, with only 0.1% of the ETF’s shares currently sold short.

The days-to-cover ratio, which provides insight into how long it would take to cover all short positions based on average trading volume, is presently at 0.0 days. The average daily trading volume for DFAR is approximately 2,046,375 shares, underscoring a robust trading environment.

Recent Stock Performance

In midday trading on Friday, DFAR shares increased by $0.06, bringing the stock price to $25.28. A total of 1,033,219 shares changed hands, compared to the average trading volume of 1,632,226 shares. The ETF’s performance over the past year has shown fluctuations, with a 12-month low of $20.32 and a high of $25.46. The current 50-day moving average price is $23.76, while the 200-day moving average stands at $23.62. With a market capitalization of $1.62 billion, the ETF also has a price-to-earnings (P/E) ratio of 31.45 and a beta of 0.94, indicating relatively stable performance compared to the broader market.

Hedge Fund Activity

Recent activity from hedge funds reflects growing interest in the Dimensional US Real Estate ETF. Notably, Larson Financial Group LLC established a new stake in DFAR during the third quarter, valued at approximately $25,000. EverSource Wealth Advisors LLC increased its holdings by 81.2%, acquiring a total of 1,154 shares valued at around $28,000 after purchasing an additional 517 shares.

Additionally, CNB Bank entered the scene with a new position worth approximately $33,000, while Sittner & Nelson LLC raised its stake by 94.6% during the second quarter, bringing its total to 2,259 shares valued at $53,000. EQ Wealth Advisors LLC also acquired a new stake in DFAR during the fourth quarter, valued at approximately $77,000. This activity suggests a positive outlook among institutional investors regarding the ETF’s potential.

The Dimensional US Real Estate ETF primarily invests in real estate equities, including Real Estate Investment Trusts (REITs). Launched on February 23, 2022, the fund is actively managed and focuses on US companies engaged in the broader real estate sector, with portfolio holdings weighted by market capitalization.

As investor interest continues to evolve, the performance and management of DFAR will be closely monitored, particularly in light of these changes in short interest and hedge fund activity.