Bearish On Disruptive Innovation? Actively Managed ETF Provides A Play For Traders To Short Cathie Wood's ARKK
Portfolio Pulse from Melanie Schaffer
The AXS Short Innovation Daily ETF (SARK) is designed for traders looking to short Cathie Wood's ARKK Innovation ETF, which has underperformed the general market. SARK trades near flat, mirroring ARKK's stagnant performance. SARK, an actively managed fund, inversely tracks the AXS 2X Innovation ETF (TARK), aiming to capitalize on disruptive innovation's downturns. The article also highlights a potential upside for SARK based on technical analysis, suggesting a move towards $30 if it breaks above $27.90.
March 18, 2024 | 6:52 pm
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NEGATIVE IMPACT
ARKK's underperformance compared to the general market is highlighted, with its inability to surpass its April 22, 2022, high of $55.
ARKK's underperformance is a critical factor for investors, especially when compared to the broader market's gains. This trend could continue affecting its short-term price movement negatively.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
TARK, an actively managed fund, aims to return 200% of ARKK's daily performance, offering a leveraged play on disruptive innovation.
TARK's goal to double ARKK's daily performance introduces a high-risk, high-reward scenario for investors bullish on disruptive innovation, though its short-term impact is uncertain.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SARK, designed to short ARKK, shows potential for an upside move based on technical analysis, with a target near $30 if it surpasses $27.90.
SARK's performance is closely tied to ARKK's underperformance. The technical analysis indicating a possible upside move makes it a significant asset for investors betting against disruptive innovation.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 90