Short ARKK ETF To Bet Against Cathie Wood's Fund

Short ARKK ETF To Bet Against Cathie Wood's Fund
  • According to Bloomberg, the Short ARKK ETF would track the inverse performance of Cathie Wood’s $23 billion Ark Innovation ETF ARKK through swaps.
  • As per the Securities and Exchange Commission filing, the fund would trade under the ticker SARK and charge a 0.75% operating expense. 
  • Post-launch, the SARK would be managed by Matt Tuttle, chief executive officer at Tuttle Capital Management LLC.
  • “In sum, as ARKK already represents a long exposure to a basket of unprofitable tech stocks, we thought that investors should have access to the short side as well,” Bloomberg quoted Tuttle’s email saying. 
  • Cathie Wood’s ARKK was one of the best-performing ETFs last year, with a 149% return.
  • “Active ETFs are doing better than they have in the past, but passive is still king. A lot of that active flow in the big months from late 2020 to early 2021 is to Cathie’s funds,” says James Seyffart, an ETF analyst for Bloomberg Intelligence.
  • According to data from IHS Markit Ltd., short interest in the fund is currently 4.6% of shares outstanding, down from a record 5.3% in March.  


Posted In: ARK Innovation ETFCathie WoodSARKNewsETFsGeneral