Anti-ARK ETF Trading Above Cathie Wood’s Flagship Fund

(Bloomberg) -- An exchange-traded fund that’s making waves thanks to its singular bet against Cathie Wood’s flagship fund just notched a new milestone.
The price of the Tuttle Capital Short Innovation ETF ( $Tuttle Capital Short Innovation ETF(SARK.US)$ ) on Friday closed higher than Wood’s ARK Innovation ETF ( $ARK Innovation ETF(ARKK.US)$ ) for the first time. In other words, it’s become more expensive to buy shares in a fund making very short-term bets against ARKK than it has to buy shares of the ETF itself.
SARK uses swap agreements with big financial institutions that are structured to deliver the inverse of ARK Innovation’s performance each day. Nonetheless it has surged more than 60% year-to-date as Wood’s main fund has lost more than 40% amid looming rate hikes and the war in Ukraine.
SARK ended Friday up at $57.25, while ARKK finished down at $55.58. On Monday, that gap widened further, with ARKK closing at $52.29, compared with SARK’s $60.61. That means its price has doubled since its market debut at the end of last year, according to Matt Tuttle, chief executive officer at Tuttle Capital Management LLC.
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