IGPT, the Invesco AI and Next Gen Software ETF, has reversed course sharply since last week's note — the short pressure that was building through early July has unwound almost as fast as it arrived.
The story in the lending market is a near-complete about-face. One week ago, availability had tightened to around 142% with short interest climbing toward 209,000 shares. Today, availability has blown back out to essentially uncapped levels, and the short position has fallen 21% on the week to roughly 173,000 shares — erasing most of the build that made the prior note interesting. Crucially, the tightest moment in the borrow came on July 14-15, when availability dipped to around 142% and the ORTEX short score peaked near 49. Both have since retreated: the short score is now 27.8, close to its lowest reading of the past two weeks. Cost to borrow has dipped back below 2.3% after briefly spiking to that level, and remains well below the June highs near 4.4%. The borrow market has gone from modestly tight to effectively loose in less than a week.
Short interest at 1.6% of free float is low for an ETF. With availability now running at near-limitless levels, the shorts that remain face no squeeze pressure whatsoever. The one signal worth noting is that the put/call ratio has nudged up to 0.037, around 1.3 standard deviations above its 20-day average of 0.028. That is a mild uptick toward caution, but context matters: the 52-week PCR high is 0.66, meaning the current reading is far closer to the floor (0.019) than to any meaningful defensive extreme. Options positioning remains overwhelmingly call-heavy. The structure here does not look like a fund where options traders are expressing concern.
The price action adds a layer of complexity. IGPT closed at $93.35 on Tuesday, up nearly 5% on the day — a sharp single-session recovery. But the fund is still down 3.1% on the week and down 12.3% over the past month. The July drawdown has been meaningful for an AI-focused ETF, reflecting broader sector pressure. The rebound on Tuesday aligns with the short covering — the 7% single-day drop in shares short coincides with the price jump, suggesting at least some of the move was technical rather than fresh buying conviction.
Institutional holders from the Q1 filings show a broadly stable roster. UBS Asset Management holds around 6% of shares. HighTower Advisors made the largest addition in the most recent period, adding 284,000 shares to reach a 2.6% stake. That data is from March, so it predates the July volatility and should not be read as a current signal.
What to watch next is whether the short position stabilises near current levels or continues to unwind — a further decline toward the late-June trough of roughly 56,000 shares would confirm that the early-July build was purely tactical, while any rebuilding of the position alongside renewed availability tightening would reopen the dynamic flagged in last week's note.
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