The Vanguard FTSE Emerging Markets ETF (NYSEARCA: VWO) experienced a significant decline in short interest, dropping by 28.5% in December 2023. As of December 31, short interest totaled 14,664,103 shares, down from 20,508,579 shares recorded on December 15. Currently, about 0.7% of the ETF’s total shares are sold short, reflecting a shift in investor sentiment.
The short-interest ratio for VWO stands at 1.4 days, calculated against an average daily trading volume of 10,196,117 shares. This indicates a relatively low level of bearish sentiment towards the ETF, especially in the context of its trading patterns.
Price Performance and Trading Volume
On December 29, 2023, VWO traded down by $0.34, reaching a price of $56.00. The trading volume for the day amounted to 12,320,672 shares, slightly below the average volume of 14,551,035 shares. Over the past year, the ETF has seen a 52-week low of $39.53 and a high of $56.57. The fifty-day simple moving average is currently at $54.39, while the two-hundred-day moving average is at $53.15. With a market capitalization of approximately $110.05 billion, VWO has a price-to-earnings (P/E) ratio of 15.08 and a beta of 0.55, indicating lower volatility compared to the broader market.
Institutional Inflows and Changes
Several institutional investors have recently adjusted their positions in the Vanguard FTSE Emerging Markets ETF. Notably, Corient Private Wealth LLC increased its holdings by 104.6% during the second quarter, acquiring an additional 6,773,228 shares. This brought its total to 13,246,257 shares, valued at around $650.7 million.
Gallagher Fiduciary Advisors LLC made a more dramatic increase, boosting its stake by 4,672.3% in the same quarter. They now own 3,304,750 shares valued at approximately $163.5 million after purchasing an additional 3,235,502 shares.
Other significant changes include Northwestern Mutual Wealth Management Co., which raised its stake by 4.5% to 74,834,185 shares, valued at $4.05 billion. Vanguard Group Inc. also increased its holdings by 4.5%, now owning 74,185,538 shares worth about $3.67 billion after buying an additional 3,194,696 shares.
Jasper Ridge Partners L.P. reported an 85.9% increase in its position, now holding 6,256,903 shares valued at approximately $309.5 million after acquiring an additional 2,891,204 shares. Currently, 67.19% of VWO’s stock is owned by hedge funds and other institutional investors, indicating strong institutional interest.
The Vanguard FTSE Emerging Markets ETF aims to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index. This index measures the returns of stocks issued by companies located in emerging market countries. The ETF’s recent performance and shifts in short interest reflect broader market trends and investor confidence in emerging markets.
