As an equal-weight ETF, XOP is not overly exposed to any of those names on an individual basis, but when combined, those stocks are over 5% of the ETF’s weight. [Oil ETFs Plagued by Bearish Views]
XOP itself is often a haven for short sellers as there have been instances over the ETF’s almost nine years of trading where short interest has eclipsed 100% of the fund’s shares outstanding. XOP’s reputation as a favored target of short sellers could explain why the ETF has hauled in almost $294 million in new assets since the start of October.
A similar scenario has been seen with the United States Oil Fund (NYSEArca: USO), which has seen its shares outstanding and AUM tallies rise while the fund has tumbled. The reason: New shares must are created for short sellers to borrow, giving the impression of increased assets. [Investors Run to Oil ETFs]
SPDR S&P Oil & Gas Exploration & Production ETF
