Goldman Sachs report: Hedge funds' short positions in US-listed ETFs hit a four-year high

According to Mars Finance news, Goldman Sachs' brokerage business said that as the stock market rally cooled, last month hedge funds increased their short positions in US-listed ETFs across various asset classes at the fastest pace in nearly four years.

Vincent Lin, co-head of Goldman Sachs Prime Insights & Analytics, said short positions in US-listed ETFs increased by 14.6% in December, the largest monthly increase since February 2021.

Index and exchange-traded funds, such as macro products, saw net inflows in the first half of the month, but selling activity increased towards the end of the year. The markets with the most short positions include small-cap stocks, healthcare, and corporate bond ETFs.