Tuttle Capital Management (TCM) CEO and CIO Matthew Tuttle says he is betting against Cathie Wood’s ARK Innovation ETF.
|SARK||COLLABORATIVE INVESTMNT SER TR TUTTLE CAP SHORT INNOVATION||59.36||+0.38||+0.64%|
|ARKK||ARK ETF TR INNOVATION ETF||49.94||-0.12||-0.24%|
Tuttle is taking a different approach with his short-term ETF, receiving the attention of investors during this year’s market turbulence. The anti-ARKK ETF, under the ticker SARK, is up 82% since November.
TCM says the exchange traded fund “attempts to achieve the inverse (-1x) of the return of the ARK Innovation ETF for a single day, not for any other period.”
After beating much of the U.S. market in 2020, Wood’s flagship fund has struggled to maintain the performance. The ETF is approaching a two-year low, facing pressure from high inflation and the Federal Reserve’s tightening monetary policy.
“We knew that it had gone up so far, that there was a potential for a pretty big drop. Certainly there was also a lot of demand to short it,” Tuttle explained to FOX Business. “It seemed like a no-brainer given the macro environment, launch the product.”
SARK is the first exchange traded fund to inverse another ETF. Tuttle Management Capital says the goal is to provide investors with exposures that have never been done before.
As investors try to weather this storm of market volatility, Tuttle tells FOX Business that the focus should be on “energy stocks, commodity-based stocks, and a lot of cash.”