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Cathie Wood is a well-known American investor and head of investment firm ARK Invest. Her firm’s flagship fund, the ARK Innovation ETF (ARKK), garnered headlines and praise when it soared about 153% in 2020.
ARKK invests in disruptive technology companies from industries such as DNA technology, automation, robotics and artificial intelligence. But many investors believe that what goes up must come down. So, for investors who trust that a fund like ARKK is bound to pull back from time to time, AXS Investments launched its Short Innovation Daily ETF. That fund, SARK, in effect bets against ARKK by shorting it.
SARK was launched in late 2021 to profit from ARKK’s volatility and to deliver approximately 100% inverse returns of the fund. SARK uses swap agreements. SARK is highly concentrated with about 68% of its holdings in the software, internet, biotechnology and auto manufacturers industries.
SARK is appropriate for active and knowledgeable traders who understand the new technology arena. As with our other inverse ETFs, SARK is a short-term ETF, suitable only for single-day trading.