The Tuttle Capital Short Innovation ETF shorts Ark Innovation using swap contracts and has jumped 56% since its Nov. 9 debut.
The anti-ARKK fund is riding high. The Tuttle Capital Short Innovation ETF (SARK), designed to provide an inverse daily return to the Ark Innovation ETF (ARKK) – Get ARK Innovation ETF Report, has now accumulated $234 million in assets, Bloomberg reports.
The Tuttle fund is less than three months old, starting last Nov. 9. The Ark fund, of course, is run by famed investor Cathie Wood.
The Ark fund has tumbled 42% since Nov. 9, as higher interest rates have decimated speculative technology stocks. Meanwhile, the Tuttle fund, which uses swap contracts to short the Ark fund, has surged 56%.
To be sure, the Ark fund’s No. 1 holding Tesla (TSLA) – Get Tesla Inc Report has actually gained 9% over the last three months. But No. 2 Zoom Video Communications (ZM) – Get Zoom Video Communications, Inc. Class A Report has plunged 46%, No. 3 Teladoc Health (TDOC) – Get Teladoc Health, Inc. Report has dropped 48%, and No. 4 Roku (ROKU) – Get Roku, Inc. Class A Report has lost 55%.
So it has been a good time to take the opposite side of Wood’s bet on what she calls “disruptive” technologies. And apparently there are some investors eager to do it.
About $200 million the Tuttle fund’s assets have come from investor inflow, Bloomberg reports, with the rest resulting from the appreciation of the assets themselves.
“Any indie ETF that gets over $200 million in assets has beaten the odds, let alone doing it in its first three months,” Eric Balchunas, senior ETF analyst with Bloomberg Intelligence, told his company’s news service.
Matthew Tuttle, CEO of Tuttle Capital Management, told Bloomberg his fund has drawn investor money even on days when the Ark fund gains. That shows investors are using his fund as a hedge or a bet on the macro environment, not just as a means to profit on the Ark fund’s drop, Tuttle said.
