The AB Tax-Aware Short Duration Municipal ETF (NYSEARCA: TAFI) experienced a significant spike in short interest in December 2023. As of December 15, the short interest rose to 112,230 shares, marking an increase of 49.0% from the 75,341 shares recorded on November 30. With an average daily trading volume of 248,510 shares, this leads to a short-interest ratio of 0.5 days, indicating a relatively low level of short selling against the stock, which currently sees 0.3% of its shares sold short.
### Hedge Fund Activity
In a notable move, JPMorgan Chase & Co. significantly increased its holdings in TAFI. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), the institution raised its stake by 55.7% during the second quarter of 2023. Following this increase, JPMorgan now owns 696,961 shares valued at approximately $17,501,000, representing 2.09% of the ETF.
### Performance and Trading Activity
On Monday, TAFI stock saw a modest increase, trading up by $0.02 to reach $25.28. The trading session saw 117,642 shares exchanged, slightly below its average volume of 228,228 shares. The ETF’s performance metrics indicate a 50-day simple moving average of $25.26 and a 200-day simple moving average of $25.22. Over the past year, the stock has fluctuated between a low of $24.55 and a high of $25.42.
### About AB Tax-Aware Short Duration Municipal ETF
The AB Tax-Aware Short Duration Municipal ETF is an actively managed fund focused on investment-grade fixed income, primarily consisting of municipal bonds from the United States. Launched on September 13, 2022, the ETF aims to maintain a dollar-weighted average duration of less than three years, making it a potentially attractive option for investors seeking lower interest rate risk.
As market dynamics continue to evolve, developments in short interest and institutional investments may provide insights into future performance for this ETF and the broader fixed income landscape.
