Short ARKK ETF To Bet Against Cathie Wood's Fund

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  • According to Bloomberg, the Short ARKK ETF would track the inverse performance of Cathie Wood’s $23 billion Ark Innovation ETF (NYSEARCA: 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.

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