The short interest in the AB Tax-Aware Short Duration Municipal ETF (NYSEARCA:TAFI) has experienced a significant increase of 49.0% during December 2023. As of December 15, the total short interest reached 112,230 shares, up from 75,341 shares reported on November 30. This rise reflects growing trading activity around the ETF, which typically sees an average daily volume of 248,510 shares. With the current short-interest ratio at 0.5 days, only 0.3% of the ETF’s stock is currently short sold.
Institutional Investment Insights
Notably, institutional investors are actively adjusting their positions in the AB Tax-Aware ETF. JPMorgan Chase & Co. has notably boosted its stake in the fund by 55.7% during the second quarter, as indicated in its latest 13F filing with the Securities and Exchange Commission (SEC). The firm now holds 696,961 shares of the ETF, having acquired an additional 249,468 shares in the recent quarter. This investment amounts to approximately $17,501,000, representing about 2.09% of the ETF’s total stock.
The ETF’s performance in midday trading on Monday reflected modest gains, with shares rising by 0.1% to reach $25.28. During this session, 117,642 shares changed hands, slightly below the ETF’s average trading volume of 228,228. The fund’s 50-day simple moving average stands at $25.26, while the 200-day average is at $25.22. Over the past year, the ETF has fluctuated between a low of $24.55 and a high of $25.42.
About the AB Tax-Aware ETF
The AB Tax-Aware Short Duration Municipal ETF is designed to invest primarily in investment-grade fixed income securities, focusing on municipal bonds within the United States. Launched on September 13, 2022, this actively managed ETF aims to maintain a dollar-weighted average duration of less than three years. Managed by AB Funds, TAFI provides investors with a strategy that seeks to balance yield and risk in a low-duration investment approach.
This recent surge in short interest highlights the dynamic nature of trading in the municipal bond space, as investors respond to various market factors and institutional strategies.
