Smallcap stocks have seen a solid start to 2026, with the State Street SPDR Portfolio S&P 600 Small Cap ETF up ~9% year-to-date.
Comparatively, the S&P 500 index is in negative territory, having logged about a -0.15% return year-to-date.
With interest rate cuts looming, inflation decreasing, and the economy holding relatively steady, investors are readying for a breakout in smallcap stocks, a recent report by S&P Global Market Intelligence said.
The smallcap rally is expected to intensify in 2026, the report said, citing Tyler Richey, a co-editor with Sevens Report Research.
Considering the current scenario, Seeking Alpha has compiled a list of the most and least shorted REIT stocks (with a market cap up to $2B) as of mid-February.
Short interest is the percentage of shares outstanding that have been sold short but have not yet been covered or closed out. Extremely high short interest shows investors are very pessimistic.
Most shorted stocks:
- Netstreit (NTST) – 22.31% of shares outstanding
- JBG SMITH Properties (JBGS) – 16.84% of shares outstanding
- Pebblebrook Hotel Trust (PEB) – 15.83% of shares outstanding
- Hudson Pacific Properties (HPP) – 11.22% of shares outstanding
- Innovative Industrial Properties (IIPR) – 10.79% of shares outstanding
Least shorted stocks: