The Nicholas Fixed Income Alternative ETF (NYSEARCA:FIAX) experienced a notable drop in short interest during December 2023. As of December 15, short interest in the ETF fell by 63.6%, totaling just 1,411 shares, down from 3,875 shares reported on November 30. This decline reflects a current short interest of approximately 0.0% of total shares, indicating a significant shift in investor sentiment.
With an average daily trading volume of 12,876 shares, the days-to-cover ratio stands at just 0.1 days. This low ratio suggests that any short positions could be quickly covered should market conditions change.
Current Stock Performance and Market Metrics
During trading on the afternoon of December 15, shares of the Nicholas Fixed Income Alternative ETF remained stable at $17.99. The trading volume reached 24,445 shares, surpassing the average daily volume of 16,617 shares. The ETF has fluctuated between a 52-week low of $17.60 and a 52-week high of $19.23.
Currently, the ETF holds a market capitalization of $154.17 million, a price-to-earnings (P/E) ratio of 17.96, and a beta of 0.22, indicating lower volatility compared to the broader market. The fund’s 50-day and 200-day simple moving averages are at $18.03 and $18.10, respectively.
Institutional Activity and Fund Management
Institutional interest in the Nicholas Fixed Income Alternative ETF is growing. Recently, Flow Traders U.S. LLC increased its position in the ETF by an impressive 148.6% during the third quarter of 2023. According to its latest Form 13F filing with the Securities and Exchange Commission, Flow Traders now holds 105,614 shares after acquiring an additional 63,138 shares. This investment represents approximately 1.23% of the total shares of the fund, valued at about $1,904,000.
The Nicholas Fixed Income Alternative ETF, launched on November 29, 2022, is an actively managed fund that primarily invests in multi-strategy alternatives. The fund aims to provide income through a short-term portfolio of U.S. Treasury securities while employing a vertical option spread strategy across various asset classes.
As the market evolves, the movements in short interest and institutional investments may provide insight into the fund’s future performance and investor confidence in the fixed income alternative sector.
