The Anti-ARK ETF, which feasts on the downturns of Cathie Wood's flagship ARKK ETF has garnered heightened investor attention and received over $250 million of net inflows since launch. The Tuttle Short Capital Innovation ETF (SARK), Wood's "Arch-enemy" launched on the Nasdaq on November 9th, 2021, and actively seeks to achieve the inverse (-1x) of the return of ARKK for a single day (not for any other period). Since its inception, SARK has generated over +88% returns while the ARKK sank by -54% during the same period.
What is the ARK Innovation ETF (ARKK)?
The ARK Innovation ETF (ARKK) invests in companies that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA Technologies and the “Genomic Revolution.” This includes automation, robotics, energy storage, artificial intelligence, fintech innovation, and the “Next Generation Internet". ARKK has a total expense ratio of 0.75% and trades primarily on the NYSE Arca.
ARKK remains a popular product among institutional and retail investors but has been suffering from repeated blows in the market. According to analysts, a large portion of the fund's underlying holdings has ballooned in valuations after benefitting from the one-off Covid-19 rally. Looming interest rate hikes as hinted by the U.S. Federal Reserve did not help ARKK's case and led several investors to dump some of its largest holdings.
Despite the flashing red, bargain-hunting investors jumped back in this year and added $920 million into ARKK, according to Trackinsight.
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