It has been two years since ARK broke the circle and became famous in 2020.
At that time, the return rate of ARK Fund was as high as 150%, and Sister Wood was like a god.
Not to mention the decline from the highest point, ARK's flagship fund ARK has fallen by 44.8% in 2022 alone. Who has heaven spared!$ARK Innovation ETF(ARKK)$
ARKK fell over, and someone made a full profit. After ARK became famous in the capital rivers and lakes, more people were targeted, including small fish and shrimp who followed him and sharks who were bloodthirsty.
As part of the idea of free and open finance, we know that ARK is used to publicizing its trading records, and retail investors often follow the operation as a guiding light. In a sense, financial markets are like dark forests, and it is important not to expose themselves. Exposure is danger.
What this article will introduce is the reverse ETF of ARKK$Tuttle Capital Short Innovation ETF(SARK)$. The SARK code is easy to understand, and S stands for short. Since it was launched and listed in November last year, it has doubled its achievements yesterday.
ETF is a boring thing, because the fluctuation is small and does not stimulate, passive investment has to be stable, and it cannot echo the enthusiastic mood of retail investors to make money. With regard to this ETF, it not only makes followers get rich quickly. I found that it may still be a pretty personalized ETF, or some characteristics:
1. The battle of ideas.
It can be called bearish hunting, but if it is based on a more mature perspective, it can be regarded as a battle of ideas.
Value VS growth has always been one of the basic distinctions of financial market bets. Sometimes you are right, sometimes it is wrong.
The sponsor of this ETF can think that it is wrong to grow up and should fall down. For a glimpse of why the market is bearish on ARK's performance, you can get a glimpse of Cathie Wood's related news.
Sister Wood has been "dismissive" of inflation warnings, thinking that the current inflation level and the negative effects affecting her stock selection will not last. She repeatedly said that due to the downward pressure on prices brought about by technological innovation, the long-term trend of the economy is deflation rather than inflation.
"Our fund has experienced a sharp decline. We believe that innovative stocks are now in a low-price area, and technology stocks are greatly underestimated relative to their potential. Give us five years and we are running a deep value portfolio."
Last year, the size of the fund almost halved, and her portfolio, which is dominated by speculative technology stocks, has been under a lot of pressure in the face of market concerns about the Fed's interest rate hike.
Raise inflation, and people think that value will outperform growth. No matter how confident and ambitious Cathie Wood is, the stock price figures are so honest that even schoolchildren can't cheat.
ARKK has always taken the technology stocks that bet on disruptive innovation as its main position. Another way to put it mildly is that the target usually loses money and has no profit. The top 10 positions are as follows,
To understand ARKK is to understand SARK. After all, SARK is about equal to-ARKK.
2. The same rate as the tracking target ARKK.
Like anger, it is also a mirror image.
0.75% management fee, ARKK same rate, OK?
3. Reverse ETF.
The US financial market is developed, and reverse ETFs are not uncommon in the US stock market. Even so, I still want to explain it from a practical sense:
This ETF attempts to track ARKK to the same opposite direction of ARKK's single-day volatility.
Equal amplitude, opposite direction. This is the self-cultivation of a reverse ETF.
As for how to achieve this effect in reverse ETF, don't think it is holding short positions, and suggest self-study. Until learning is abandoned.
Because SARK's market is very good, its scale is also rising. The above picture shows the change of net value since SARK went public.$Tuttle Capital Short Innovation ETF(SARK)$
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