Tuttle Capital Short Innovation ETF (SARK)SARK

ETF Tuttle Capital Short Innovation ETF Overview

Profile:

Tuttle Capital Short Innovation ETF (SARK) is an actively managed exchange-traded fund that seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the performance of the ARK Innovation ETF (ARKK). SARK primarily invests in short-term Treasury securities and uses derivatives, such as swaps, to achieve its investment objective.

Objective:

The primary investment goal of SARK is to provide investors with a daily return that is the opposite of the daily performance of ARKK. This means that if ARKK goes up in value, SARK is expected to go down in value by a similar amount, and vice versa.

Issuer:

Tuttle Capital Management, LLC is the issuer of SARK.

• Reputation and Reliability: Tuttle Capital Management is a relatively new firm, founded in 2015. The firm has a small team of experienced professionals with backgrounds in investment management and quantitative analysis.
• Management: The portfolio manager of SARK is Matthew Tuttle, the founder and CEO of Tuttle Capital Management. Tuttle has over 20 years of experience in the financial industry and holds a Ph.D. in economics.

Market Share:

SARK is a relatively small ETF, with a market share of less than 0.1% in the short innovation ETF category.

Total Net Assets:

As of November 1st, 2023, SARK had total net assets of $68 million.

Moat:

SARK has a unique investment strategy that provides investors with exposure to the opposite of the performance of ARKK. This can be an attractive investment for investors who believe that ARKK is overvalued or who want to hedge their exposure to the technology sector.

Financial Performance:

Since its inception in June 2021, SARK has delivered a positive return of over 200%. However, it is important to note that past performance is not necessarily indicative of future results.

Benchmark Comparison:

SARK's performance has been inversely correlated to that of ARKK. When ARKK has declined in value, SARK has generally increased in value, and vice versa.

Growth Trajectory:

Given the recent volatility in the technology sector, it is difficult to predict the future growth trajectory of SARK. However, the rising popularity of short innovation ETFs suggests that there may be continued demand for this type of investment.

Liquidity:

SARK has an average trading volume of over 1 million shares per day. The bid-ask spread is typically less than 0.1%.

Market Dynamics:

The performance of SARK is primarily driven by the performance of ARKK and the overall market sentiment towards the technology sector.

Competitors:

Key competitors of SARK include:

• ProShares Short Innovation ETF (SARK): 0.85% market share
• Direxion Daily Technology Bear 3X Shares (TECS): 0.55% market share

Expense Ratio:

The expense ratio of SARK is 0.95%.

Investment Approach and Strategy:

SARK uses a short-selling strategy to achieve its investment objective. This means that the ETF borrows shares of ARKK and then sells them in the market. If the price of ARKK declines, SARK will be able to buy back the shares at a lower price and profit from the difference.

Key Points:

• SARK provides investors with exposure to the opposite of the performance of ARKK.
• SARK has a unique investment strategy and a relatively low expense ratio.
• SARK is a relatively small ETF with a short track record.

Risks:

• Volatility: SARK is a highly volatile ETF, meaning that its price can fluctuate significantly in a short period of time.
• Market Risk: SARK is subject to market risk, meaning that its performance can be affected by factors such as interest rates, economic conditions, and geopolitical events.
• Counterparty Risk: SARK uses derivatives, such as swaps, to achieve its investment objective. There is a risk that the counterparty to these derivatives may default on their obligations, which could result in losses for SARK.

Who Should Consider Investing:

SARK is suitable for sophisticated investors who understand the risks associated with short-selling and who believe that ARKK is overvalued or who want to hedge their exposure to the technology sector.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, we give SARK a Fundamental Rating of 6 out of 10.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Tuttle Capital Management website
• ETF.com
• Morningstar

Please note that this analysis is not a recommendation to buy or sell SARK. Investors should conduct their own due diligence before making any investment decisions.