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Anti-Ark ETF to bet against Cathie Wood’s flagship fund

Bloomberg8/1/2021 03:03 PM GMT+08  • 2 min read
Anti-Ark ETF to bet against Cathie Wood’s flagship fund
"ARKK represents a long exposure to a basket of unprofitable tech stocks"
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Those who think Cathie Wood’s hot hand is cooling may soon be able to express that view via an exchange-traded fund.

The Short ARKK ETF would seek to track the inverse performance of the US$23 billion Ark Innovation ETF (ticker ARKK) -- the largest fund in Ark Investment Management’s lineup -- through swaps contracts, according to a filing Friday with the U.S. Securities and Exchange Commission. The fund would trade under the ticker SARK and charge a 0.75% operating expense, in line with ARKK’s fee.

If launched, SARK would serve as a bold bet against one of 2020’s most successful managers. ARKK surged roughly 150% last year with Wood at the helm, frequently doubling down on Tesla Inc. and other high-flying technology shares. However, some of the fund’s hottest stocks have since weighed on its performance as the market’s speculative fervor settles -- ARKK is underwater by 3.6% in 2021, versus the S&P 500’s 17% gain.

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