Alternative Investments/Digital: New ETF From Tuttle Capital Bets Against Cathie Wood And Ark
Investors in the new (short) ETF will gain if the Ark Innovation Fund falls.
The Tuttle Capital Short Innovation ETF (NASDAQ: SARK), which started for trading Tuesday, takes a contrarian view on famed stock picker and fund manager Cathie Wood’s flagship fund – the ARK Innovation ETF (NYSEARCA: ARKK). The new ETF, a type of fund also known as a “short” or “inverse” ETF, is actively managed and is structured to achieve the inverse of the return of the ARK ETF in a single day. (Benzinga)
ARK Innovation ETF
Wood’s ARK Innovation ETF has delivered an impressive return of 538.7% return over five years, and nearly 175% over three years. However, these returns are looking shaky going forward, and the fund is down 5% year to date.
It holds concentrated bets in certain tech and fintech companies among a portfolio of 44 stocks. According to Tuttle Capital, this portfolio is “involved in disruptive industries such as electric vehicles, next-gen internet, genomics and fintech.”
However, many investors wary of the bloated valuations of these companies would be unable to practically implement the short thesis.
“SARK offers investors of all sizes and types convenient “one-ticker” access to a short vehicle that may otherwise be difficult to execute on their own,” says Tuttle Capital.
“Whether you believe that the current bull thesis for transformational industries is stretched, or you are looking to provide protection to an existing portfolio of high-growth stocks, SARK is a potentially attractive opportunity worth exploring,” says Matthew Tuttle, Chief Executive Officer and Chief Investment Officer of Tuttle Capital Management LLC (“TCM”), who serves as the Adviser to SARK.
To CNN Tuttle said: “If we do ever see a correction again and a bear market, my guess is those momentum companies in the Ark funds will do a lot worse.”
Related Story: Cathie Wood’s ARK Investment To Launch Transparency ETF
Image Of Catherine Wood: Ark Funds
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