As ARKK hits a 52-week low, anti-ARK jumps over 30% since its debut
$ARK Innovation ETF(ARKK.US$ slumps 9% following painful run last year as investors pull more than $300m this year. ARKK hits a new 52-week low of $85, which is about 47% lower than its peak in 2021. In contrast, anti-ARK fund $Tuttle Capital Short Innovation ETF(SARK.US$ jumps 9.7% in 2022, and it has already been up over 30% since its debut two months ago.
Read my previous article about SARK: The anti-ARKK ETF gets off to slow start with just $4.7 million
SARK's Growth
Tuttle Capital's short ARK ETF, which is known as $Tuttle Capital Short Innovation ETF(SARK.US$, is designed to inversely track Wood's flagship fund comprised primarily of investments that have come to be referred to as unprofitable technology stocks. Such investments include $Coinbase(COIN.US$, $Zoom Video Communications(ZM.US$, and $Teladoc Health(TDOC.US$.
SARK has surpassed $100 million in assets under management (AUM) on Dec 14, 2021, and it only took 24 trading days to reach the mark.
While the $100 million AUM level is an accomplishment on its own, we are extremely encouraged by SARK's trading volumes since the launch. Investors have really embraced the fund not only as a way to hedge their growth portfolios, but as a vehicle to invest against a basket of stocks that are especially vulnerable in a rising rate environment."
--- commented Matthew Tuttle, Chief Executive Officer and Chief Investment Officer of TCM, Advisor to SARK.
--- commented Matthew Tuttle, Chief Executive Officer and Chief Investment Officer of TCM, Advisor to SARK.
Tech Pain & ARKK's falls
According to Finincial Times, ARKK's losses come as the technology-heavy $Nasdaq Composite Index(.IXIC.US$ on Wednesday suffered its worst day since February last year. This followed a warning from the US Fed that a faster pace of interest rate rises could be necessary to tame inflation, and reflects expectations that the Omicron coronavirus variant will be less disruptive to large global economies than previous strains of the virus.
This led investors to dump shares in many of the technology companies that surged during the pandemic and buy into businesses in more economically sensitive sectors such as banks and big industrial groups that are expected to benefit from an economic recovery.
This led investors to dump shares in many of the technology companies that surged during the pandemic and buy into businesses in more economically sensitive sectors such as banks and big industrial groups that are expected to benefit from an economic recovery.
The sell-off in ARKK continued a trend that had unfolded during the past few months and reflected an environment that was changing from a period of tepid inflation and historically low interest rates to rapid price growth and rising bond yields."
--- said Russ Mould, investment director at AJ Bell, the UK's second-largest listed investment platform.
--- said Russ Mould, investment director at AJ Bell, the UK's second-largest listed investment platform.
Many of the companies in ARKK's portfolio have lofty valuations, lack of profit and lack of cash flow, which doesn't give you much downside protection if they don't deliver.
The market's faith in these kinds of names is ebbing a bit. The idea of paying lofty premiums for perceived future growth is not the mood of the market."
--- he added.
The market's faith in these kinds of names is ebbing a bit. The idea of paying lofty premiums for perceived future growth is not the mood of the market."
--- he added.
Do you still support Cathie Wood's strategy? Will you invest in ARKK or SARK this year?![]()
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Source: ARK Invest, Tuttle Capital Management, Finiancial Times, Dowjones News
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PlsLetMeEarnMoney : I still believe in mummy Cathie. She helped me to buy PLTR at 17 and sold at $25. Bought Tesla at $500 and sold at $999.
102589308 : huat ah sark etf
hgar : neither. ark is full of garbage stocks, but sometimes garbage goes up anyway. i'd rather put my money into some company with a sane valuation and not have to stress over it
Buy Out Wallstreet : ARKK is hated on and a easy target, but Wood will have the last laugh. Her stocks will dominate in 2023 and beyond with earnings. She is easy manipulation and the boys want to run her out of the club. She's the female Elon, corporate did the same thing to him in a way. Told him an electric vehicle company would never succeed in America. Now there is no manufacturer in America without a electric vehicle division... These cars are cheaper to make and more profitable, um duh... but I digress. AARK is a blessing to be so low. I'd take advantage. Wood is a beautiful mind.