Every Monday I like to look at ASIC’s short position report in order to find out which shares are being targeted by short sellers.

This is because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Myer Holdings Ltd (ASX: MYR) remains the most shorted share on the ASX despite a reduction in its short interest to 13.9%. Short sellers may believe the pandemic has accelerated the structural decline of department stores.
• Speedcast International Ltd (ASX: SDA) has short interest of 12.7%. Speedcast is a communications satellite technology provider which has been suspended for several months. It is currently in the process of declaring itself bankrupt.
• Galaxy Resources Limited (ASX: GXY) has seen its short interest remain flat at 12.5%. Galaxy is one of a number of lithium miners which are under pressure due to a material weakness in lithium prices.
• Orocobre Limited (ASX: ORE) has seen its short interest rise to 11.4%. Orocobre is another lithium miner which short sellers have their eyes on. Especially given concerns that a recovery in lithium prices could be delayed by the pandemic.
• Super Retail Group Ltd (ASX: SUL) has seen its short interest jump to 10.9%. Short sellers appear concerned that some of Super Retail’s businesses may struggle because of the pandemic.
• Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.3%, which is down slightly week on week. Pilbara Minerals is the final lithium miner in the list. Despite falling heavily over the last 12 months, short sellers must believe its shares can go even lower.
• JB Hi-Fi Limited (ASX: JBH) has seen its short interest remain flat week on week at 9.3%. Some short sellers continue to target the retailer despite its solid sales performance during the pandemic.
• Nearmap Ltd (ASX: NEA) is back in the top ten with short interest of 9.1%. Short sellers may regret this one. Last week the aerial imagery technology company’s shares rocketed higher after it provided a solid market update.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest slide to 9.1%. Short sellers appear concerned over the valuation of the biopharmaceutical company’s shares.
• Inghams Group Ltd (ASX: ING) has short interest of 8.9%, which is up slightly week on week again. The poultry company has had a tough 12 months because of the droughts and pandemic. Some short sellers appear to believe the tough times are here to stay.

More reading

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• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. and Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I think that teenagers can beat the share pros at investing.  

That’s not to say a teen just out of school can whip up an incredible discounted cashflow model for the best growth shares.

I just mean that it’s possible for a teenager’s portfolio to generate returns as good as, if not better, than a share investment pro (after fees).

There are some factors that you can point to which give regular investors an advantage. They can more easily invest for the longer-term. Fund managers are commonly judged by their short-term returns. Regular investors can also make unique investment choices. 

How teenagers can match the investment returns of the share pros

I think a key fact is that regular investors can invest in exchange-traded funds (ETFs) that are based on an index. The whole point of an investment manager is to invest differently to the index. But the ETF is just following the returns of an index. An index is just a predetermined collection of businesses. Both the Australian share market and the US share market have produced very solid returns over the years.

A high percentage of share pros don’t outperform their respective benchmarks each year in both the US and Australia. Particularly when fees are taken into account. There are a few managers out there that I think are worthwhile, but plenty of others are just broadly following the index whilst taking hefty fees.

So if a teenager were just to invest in index-based ETFs then they would likely outperform a large number of share pros, with no investment skill required. Sounds easy, right?

What ETFs would make good options for teenagers? I like the US-focused iShares S&P 500 ETF (ASX: IVV), the Australian-focused Vanguard Australian Shares Index ETF (ASX: VAS) and the global-focused Vanguard MSCI Index International Shares ETF (ASX: VGS).

More reading

• This one super fund fix could save you thousands!
• How to make $1,000 a month in dividends
• How I would build a $100,000 ASX portfolio with ETFs
• Why it could be the perfect time to buy this Vanguard ETF
• Buy these 4 ASX shares to diversify your portfolio

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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