Tuttle Capital Short Innovation ETF (SARK)

Overview

The Tuttle Capital Short Innovation ETF (SARK) is an actively managed ETF that seeks to achieve the inverse of the daily performance of the ARK Innovation ETF (ARKK). It aims to profit from a decline in ARKK's holdings.

Reputation and Reliability

Tuttle Capital Management is a smaller firm known for its leveraged and inverse ETFs. Their reputation is tied to the performance of their niche strategies.

Management Expertise

The management team specializes in creating and managing leveraged and inverse ETFs, focusing on short-term investment strategies.

Goal

To provide investors with an inverse return of the ARK Innovation ETF (ARKK) on a daily basis.

Investment Approach and Strategy

Strategy: SARK employs a swap-based strategy to achieve its inverse objective. It doesn't directly short ARKK's holdings but rather uses financial instruments to replicate the inverse performance.

Composition SARK primarily holds swap agreements that provide the inverse exposure to ARKK. Its assets also include cash and money market instruments as collateral.

Market Share: SARK's market share is significant within the inverse innovation ETF niche, although small compared to broader market ETFs.

Total Net Assets (AUM): 131550000

Key Competitors

• AXS Short China Internet ETF (SARK)

Competitive Landscape

SARK operates in a niche market with limited direct competitors. Its advantage lies in being the first and most well-known inverse ARKK ETF. However, its performance is highly dependent on ARKK's performance and the accuracy of the inverse strategy.

Historical Performance: Historical performance is inversely correlated to ARKK's performance. When ARKK declines, SARK typically increases, and vice-versa.

Benchmark Comparison: The benchmark for SARK is the inverse of ARKK's daily performance. Performance is measured by how closely it tracks this inverse.

Expense Ratio: 0.75

Average Trading Volume

SARK's average trading volume is relatively high, allowing investors to buy and sell shares easily.

Bid-Ask Spread

The bid-ask spread for SARK is typically tight, indicating good liquidity and lower transaction costs.

Market Environment Factors

Economic indicators, interest rates, and the performance of the technology and innovation sectors significantly impact SARK. Negative sentiment towards growth stocks benefits SARK.

Growth Trajectory

SARK's growth trajectory is directly linked to the performance of ARKK. Increased volatility and downward trends in innovation stocks can lead to higher demand and AUM growth for SARK.

Competitive Edge

SARK's competitive edge stems from being a readily available and straightforward way for investors to bet against ARKK. Its actively managed nature and use of swaps provide a mechanism to achieve the inverse performance. It does not involve complex shorting strategies for retail investors. The ETF's concentrated focus makes it a targeted instrument for those with a specific view on innovation stocks.

Volatility

SARK exhibits high volatility, reflecting the volatility of ARKK and the leveraged nature of its inverse strategy.

Market Risk

SARK is subject to market risk associated with innovation stocks and potential tracking errors in replicating the inverse performance of ARKK.

Ideal Investor Profile

SARK is suitable for sophisticated investors with a short-term outlook and a bearish view on innovation stocks, particularly those held by ARKK.

Market Risk

SARK is best suited for active traders looking to hedge their portfolios or profit from short-term declines in innovation stocks. It is not recommended for long-term investors due to its daily reset feature and potential for compounding losses.

The Tuttle Capital Short Innovation ETF (SARK) offers an inverse exposure to the ARK Innovation ETF (ARKK), catering to investors with a bearish outlook on innovation stocks. It uses a swap-based strategy to achieve its objective and has high volatility due to its inverse nature. SARK is primarily suited for active traders and short-term investors seeking to hedge portfolios or profit from a decline in ARKK. Its performance is highly dependent on ARKK's movements, and its value can erode over time if ARKK's value increases or remains stable.

Data Sources:

• Tuttle Capital Management
• Yahoo Finance
• ETF.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including the potential loss of principal.