ARK vs SARK: Another Way to Profit in a Downward Market
Every time the market takes a hit, tech stocks with high valuations bear the brunt of the decline. For example, Cathie Wood's Ark Innovation ETF is facing more setbacks, falling-- and this is over the past two days. Net lower it looks like by about 7.8% as the tech sell escalates.
It seems like there is no end in sight for the downturn in Cathie Wood's flagship Ark Innovation Fund. The ETF was front and center for the sell off that we've been seeing in equity markets these past few trading sessions. The tech focused fund plunged 10% in yesterday's session alone, deepening the already sharp losses that it's seen this year that began in late 2021.
The loss brings Ark down around 75% from its peak in February of last year, with all of its biggest components trading in the red year to date. This comes during a broader route in technology stocks that has been hitting the speculative innovation-focused assets that comprise Ark's holdings quite hard. But worth noting that ark is really bearing the brunt of this sell off fairing much worse than some other equity funds.
Top 10 Holdings of $ARK Innovation ETF(ARKK)$
Time as 5/11
If we do it the other way around...
$Tuttle Capital Short Innovation ETF(SARK)$
SARK is an attractive opportunity that allows investors of all types to obtain short exposure to a concentrated portfolio of secular growth companies.
However, there are something you need to know before you invest:
1. Expense Ratio is 0.75%: A good expense ratio, from the investor's viewpoint, is around 0.5% to 0.75% for an actively managed portfolio.
2. Large tracking error: Tracking error is the divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark.
3. Less Hedged Derivatives
Therefore, there is another way to short ARKK: 【Options】If only PUT one, this is it！
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
In a market downturn, defensive stocks—consumer staples, healthcare and utilities, as well as companies with higher-quality businesses and balance sheets—potentially
Buy only profitable companies with good operating cash flow & low debt
In a Downward market it is important to reaffirm our investing goals and review our portfolio. In my case it is to create a passive income to achieve FIRE. I realign my portfolio towards Defensive play. That means I go for plain vanilla ETFs like $SPDR Portfolio S&P 500 ETF(SPLG)$ , $STI ETF(ES3.SI)$ . I also allocate a portion to commodities like $Energy Select Sector SPDR Fund(XLE)$ and $BetaShares Australian Res Sect ETF(QRE.AU)$ .
I also invest in quality stocks like $DBS GROUP HOLDINGS LTD(D05.SI)$ , $Apple(AAPL)$ and just stay calm and not panic sell.
A Downward market is also a great opportunity to bargainhunt quality stocks too. Just ask Warren Buffett. He has been busy going on a stock shopping spree recently. 😍😍😍💰💰💰
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