Short Interest in First Trust California Municipal High Income ETF Declines by 52.9%

The ETF's short interest dropped significantly in February, indicating decreased bearish sentiment.

Mar. 13, 2026 at 2:20am

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First Trust California Municipal High Income ETF (NASDAQ:FCAL) saw a 52.9% decrease in short interest during the month of February, with the number of shares sold short dropping from 25,508 to 12,018. This represents only 0.3% of the company's total shares outstanding, and based on the average daily trading volume, the days-to-cover ratio is now just 0.7 days.

Why it matters

The decline in short interest suggests that investors are becoming less bearish on the ETF, which invests in California municipal bonds. This could indicate increased confidence in the fund's performance or the broader municipal bond market. Short interest is an important metric to monitor as it can provide insights into market sentiment.

The details

The First Trust California Municipal High Income ETF (FCAL) tracks an index of high-yield California municipal bonds. The fund has seen increased institutional investment, with hedge funds and other investors acquiring new positions in recent quarters. The drop in short interest may reflect a shift away from bearish bets on the fund, potentially due to improved economic conditions in California or favorable municipal bond market dynamics.

  • As of February 27th, 2026, there was short interest totaling 12,018 shares.
  • This represents a 52.9% decrease from the 25,508 shares that were short as of February 12th, 2026.

The players

First Trust California Municipal High Income ETF

An exchange-traded fund that invests in high-yield California municipal bonds.

Diversified Portfolios Inc.

A financial services firm that acquired a new position in the ETF during the second quarter of 2026.

WESPAC Advisors SoCal LLC

An investment advisory firm that acquired a new position in the ETF in the third quarter of 2026.

Koshinski Asset Management Inc.

An asset management firm that acquired a new position in the ETF in the third quarter of 2026.

Cetera Investment Advisers

An investment advisory firm that increased its stake in the ETF by 17.7% during the second quarter of 2026.

Guggenheim Capital LLC

An investment management firm that increased its stake in the ETF by 24.8% during the second quarter of 2026.

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The takeaway

The significant decline in short interest for the First Trust California Municipal High Income ETF suggests that investors are becoming less bearish on the fund and the broader municipal bond market in California. This could indicate improved sentiment and potentially increased institutional investment in the ETF going forward.