As Cathie Wood’s innovation-based ETFs have plunged in a recent crash, more investors are betting on an even worse future, according to a report by MarketWatch on Thursday.
The Tuttle Capital Short Innovation ETF (SARK), which started late last year to best against the $12 billion ARK Innovation ETF (ARKK), recorded its highest single-day net inflows on Tuesday, taking in on $92 million of new cash.
The anti-ARK fund’s record inflows of cash come after ARK Innovation dropped almost 9% in morning trading on Monday before recovering to close the day with a return of 2.8%.
The ARK fund has been falling for months. Forecasts for a more hawkish Fed and rising interest rates have hurt the high-growth stocks that dominate its portfolio.
Year to date, every of ARK Innovation’s 40 holdings has dropped by over 10%. The fund itself has plunged 27% year to date and suffered a nearly 50% loss in value in the last 12 months.
The Tuttle Capital Short Innovation ETF, which targets the inverse performance of Wood’s fund via swaps contracts, has benefited solidly.