Short sales on the TSX: Bets continue to surge against a Canadian bank ETF

In this update on the short selling of shares in Canadian public companies, we report on:

1. Major developments in the short sales of Canadian ETFs
2. Using short sales to screen for stocks to avoid or buy
3. Largest short positions in small-, mid- and large-cap Canadian companies
4. Short squeeze candidates 
5. End note on methodology and data sources.

Major developments in the short sales of Canadian ETFs

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In June, the BMO S&P/TSX Equal Weighted Banks ETF (ZEB-T) ETF continued its ascent, rising to 22.2 per cent of float short. In May, the short position in the ETF had skyrocketed to 16.1 per cent of float from 2.2 per cent the month before.

Commentary from the financial community suggests that the run-up in short selling may be tied to concerns that U.S. President Donald Trump’s steep tariffs could pull down sectors of Canada’s economy, leading to lower demand for bank loans as well as an increase in loan reserves and defaults.

The large…