DTCR Climbs 6% as Borrow Costs Rise

DTCR heads into the back half of September with a notable split: the fund has gained 6.1% over the past week, yet the cost to borrow shares has climbed to a 30-day high — a quiet signal worth watching in an otherwise bullish tape.

The most interesting development this week is in the lending market. Borrow costs have risen sharply, up 38% over the week to 1.39% — the highest rate recorded in the past 30 days, and well above the sub-1% levels seen through early September. That said, the move should be kept in context. Availability remains comfortable at 375%, meaning roughly 3.75 shares are still available to borrow for every one currently lent out. That is firmly in normal territory, and well above the 52-week trough of 41%. The lending market is tightening at the margins, not under stress.

Short interest tells a similarly modest story. At 2.4% of free float — up around 13% over the past month but still in low-signal territory — there is no meaningful short overhang in DTCR. The week-on-week change of 2.8% is noise rather than trend. Days to cover sits at just 1.1, per the most recent FINRA fortnightly data, which means any covering pressure would clear quickly. The ORTEX short score of 38.6 is mid-range and drifting slightly lower from a brief peak near 41 mid-week — consistent with a fund where shorts are present but not pressing.

Options positioning has nudged slightly more cautious than usual, though the move is modest. The put/call ratio of 0.23 runs just above its 20-day average of 0.22 — a z-score of 1.25 — placing it in the upper half of its recent range but nowhere near the 52-week high of 0.39. For an ETF tracking data center and digital infrastructure names, a PCR this low reflects the broadly constructive sentiment the theme has commanded. Calls still dominate the options book by a wide margin.

The thematic backdrop remains the primary driver. DTCR is heavily weighted toward data center operators and digital network providers — names that continue to benefit from hyperscaler capital expenditure commitments tied to AI infrastructure buildout. The fund has risen just over 1.6% in the past month and 6.1% this week, outpacing what thematically adjacent vehicles have managed recently. The most recent dividend, paid in late June at $0.11 per share, reflects the income component from underlying REIT and infrastructure holdings. Valuation data at the ETF level is limited, as expected for a fund wrapper.

The setup heading into the final week of September is one of quiet momentum rather than crowded positioning — and the main thing to watch is whether the rising borrow cost continues to track higher alongside the price, or whether it reverses as new shares become available in the lending pool.