Invesco International Corporate Bond ETF Experiences Major Drop in Short Interest

The Invesco International Corporate Bond ETF (NYSEARCA:PICB) has reported a notable decrease in short interest, dropping by 66.9% in February. As of February 13, 2023, short interest stood at 76,283 shares, a significant decline from the 230,313 shares recorded on January 29, 2023. This reduction indicates that approximately 0.7% of the ETF’s shares are currently short sold, reflecting a shift in investor sentiment.

Given an average trading volume of 220,177 shares, the days-to-cover ratio for the ETF is now 0.3 days, suggesting that the short positions can be covered quickly if necessary. This drop in short interest may be attributed to a variety of factors, including changing market conditions and investor confidence.

Institutional Investment Activity

Recent activity among institutional investors and hedge funds has revealed significant changes in their stakes within the Invesco International Corporate Bond ETF. Notably, Tanager Wealth Management LLP increased its holdings by an impressive 99.5% during the fourth quarter of 2022. The firm now owns 2,867,312 shares, valued at approximately $68.47 million, following an acquisition of an additional 1,429,753 shares during this period.

Other firms also adjusted their positions. Urban Financial Advisory Corp enhanced its stake by 0.4%, bringing its total to 908,572 shares, worth around $21.70 million after purchasing an additional 3,241 shares. Checchi Capital Advisers LLC increased its position by 2.1%, now holding 879,424 shares valued at $21 million.

A standout change was made by Thrivent Financial for Lutherans, which grew its holdings by a remarkable 687.4%. The firm now owns 467,328 shares worth approximately $11.18 million following the acquisition of an additional 407,974 shares. Wells Fargo & Company MN also saw a substantial increase, raising its stake by 35.4% to 416,917 shares, now valued at $9.96 million after buying 108,894 shares.

Current Trading Status and Performance Indicators

On the trading front, the Invesco International Corporate Bond ETF saw a slight increase of 0.3% on a recent Friday, reaching a price of $24.30. The trading volume for the day was 222,422 shares, which surpassed its average volume of 150,767 shares. Over the past year, the ETF has experienced a low of $21.84 and a high of $24.56. Its fifty-day moving average stands at $24.07, while the 200-day moving average is $23.85.

The Invesco International Corporate Bond ETF aims to mirror the performance of the S&P International Corporate Bond Index, which includes investment-grade corporate bonds issued by non-U.S. entities across various currencies, including the Australian Dollar, British Pound, and Euro.

As institutional interest continues to shift, the Invesco International Corporate Bond ETF remains a focal point for investors navigating the international bond market landscape. With significant adjustments to short interest and institutional holdings, market participants will be keenly observing future developments surrounding this ETF.