SPD Short Interest Falls 22.3% in December — What Investors Should Know

Short interest in Simplify US Equity PLUS Downside Convexity ETF (SPD) fell 22.3% to 12,656 shares by Dec 31, representing about 0.4% of shares and drew notice.

Short interest in the Simplify US Equity PLUS Downside Convexity ETF (NYSEARCA: SPD) fell sharply in December, a move that has drawn attention from investors and market watchers. As of December 31, shorted shares totaled 12,656, down 22.3% from the December 15 figure of 16,286. Approximately 0.4% of the fund’s shares were reported sold short at month-end.

Why this matters: short interest is a commonly used gauge of bearish sentiment or hedging activity on an ETF. A decline of more than 20% in a two-week span can indicate that some traders covered positions, reduced bearish exposure, or shifted strategies ahead of year-end. For an ETF like SPD — which pairs U.S. equity exposure with a downside-convexity overlay — changes in short interest may reflect evolving views on market volatility, hedging needs, or the effectiveness of the fund’s options strategy.

Context on SPD: the Simplify US Equity PLUS Downside Convexity ETF aims to offer core equity exposure while managing downside through convexity-enhancing instruments. That makes SPD relevant to investors who want growth potential with an options-based cushion against sharp market declines. Because of this structure, institutional and retail participants may use shorts either to express a view on the fund itself or as part of broader hedging strategies.

What investors should watch: while the drop to 12,656 shares and the 0.4% short ratio are notable, short interest is only one piece of the puzzle. Traders should also monitor trading volume, option-implied volatility, flows into and out of the ETF, and any changes in the manager’s disclosed strategy. If short interest continues to fall, it could signal diminishing bearish pressure; if it rises again, it may indicate renewed skepticism or hedging demand.

Bottom line: the December decline in SPD’s short interest is a meaningful data point for holders and prospective investors. It suggests reduced short positioning around year-end, but should be interpreted alongside other market indicators. Investors interested in SPD or ETFs with downside-convexity overlays should keep tracking short interest and fund flows to better understand market sentiment and risk dynamics.

Back