Tuttle Capital Short Innovation ETF (SARK)

Overview

The Tuttle Capital Short Innovation ETF (SARK) is an actively managed ETF that seeks to provide inverse exposure to the ARK Innovation ETF (ARKK). It aims to profit from a decline in the value of ARKK by shorting the ETF.

Reputation and Reliability

Tuttle Capital Management is a smaller issuer known for its leveraged and inverse ETFs. Their reputation is tied to the performance of these niche products.

Management Expertise

The management team has experience in creating and managing inverse ETFs, but their expertise is specialized in this area.

Goal

To provide investment results that are approximately the inverse (-1x) of the daily performance of the ARK Innovation ETF (ARKK) before fees and expenses.

Investment Approach and Strategy

Strategy: The ETF achieves its investment objective by shorting ARKK, aiming to profit from its daily declines.

Composition The ETF primarily uses swap agreements and other derivatives to gain short exposure to ARKK.

Market Share: SARK holds a significant market share within the inverse innovation ETF space, due to it being the primary inverse ETF for ARKK.

Total Net Assets (AUM): 126936339

Key Competitors

Competitive Landscape

SARK faces limited direct competition, as it is specifically designed to inversely track ARKK. Its success depends on ARKK's performance and investor sentiment towards innovation stocks. Advantages include its direct and transparent inverse exposure, while disadvantages include potential for losses if ARKK rises.

Historical Performance: Historical performance data is dependent on ARKK's movements. Recent performance may vary significantly due to market volatility.

Benchmark Comparison: The benchmark is the inverse of ARKK's daily performance. The ETF aims to closely match this inverse return before fees and expenses.

Expense Ratio: 0.75

Average Trading Volume

The ETF exhibits reasonable liquidity, with an average trading volume that facilitates relatively easy entry and exit for investors.

Bid-Ask Spread

The bid-ask spread is typically manageable, reflecting the ETF's liquidity and allowing for efficient trading.

Market Environment Factors

Market dynamics are heavily influenced by sentiment towards innovation stocks, interest rate policies, and overall market risk appetite. Economic indicators and technological advancements can also impact SARK's performance.

Growth Trajectory

The growth trajectory of SARK is closely tied to the perceived overvaluation or potential decline of ARKK and its underlying holdings. Changes in investment strategy are unlikely, as its primary goal is to maintain inverse exposure.

Competitive Edge

SARK's competitive edge lies in its direct and transparent inverse exposure to ARKK, a popular innovation ETF. It provides a straightforward tool for investors seeking to hedge against or profit from potential declines in ARKK's value. Its focused approach simplifies the investment thesis and appeals to those with a bearish outlook on innovation stocks. It stands out as the primary inverse ETF for ARKK, filling a specific niche in the market.

Volatility

SARK's volatility is directly linked to ARKK's volatility, potentially leading to significant price swings.

Market Risk

Market risk includes the potential for ARKK to rise in value, causing losses for SARK investors. The fund also faces counterparty risk from swap agreements.

Ideal Investor Profile

Ideal investors are those with a bearish outlook on innovation stocks or those seeking to hedge their existing ARKK holdings. Sophisticated investors who understand the mechanics of inverse ETFs are most suitable.

Market Risk

SARK is best suited for active traders and sophisticated investors with a short-term investment horizon due to the potential for daily compounding to deviate from the inverse of ARKK's longer term returns.

The Tuttle Capital Short Innovation ETF (SARK) offers an inverse exposure to the ARK Innovation ETF (ARKK). It aims to deliver daily investment results that are approximately the inverse of ARKK's performance. SARK is suitable for investors who are bearish on innovation stocks or seeking to hedge ARKK holdings, but it requires careful monitoring and understanding of inverse ETFs. Its performance is closely tied to ARKK's movements, and potential risks include market volatility and counterparty risk. SARK provides a targeted tool for those with a specific outlook on the innovation sector.

Data Sources:

• Tuttle Capital Management Website
• ETF.com
• Bloomberg
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and after consulting with a qualified financial advisor.