The ARK Innovation ETF (NYSE Arca:ARKK) has been synonymous with growth stocks, holding some of the hottest names out there. Tesla (NASDAQ:TSLA), Square (NYSE:SQ), and Roku (NASDAQ:ROKU) are staples in the fund, as are many other disruptors. But the risk is that those stocks may be a bit too expensive right now, especially with the stock market continuing to climb to new heights.
The good news is if you want to bet against those holdings, the new Tuttle Capital Short Innovation ETF (NASDAQ:SARK) allows you to do that.
The new exchange-traded fund (ETF) launched on Nov.9 and it says that it "allows investors to potentially profit from a decline in a portfolio of companies involved in disruptive industries such as electric vehicles, next-gen internet, genomics and fintech."
The fund specifically targets investors who are bearish on ARKK as it aims for an inverse return of the popular Cathie Wood's fund. And the ARKK has been on a downward trajectory this year, falling 5% year to date. ARKK's 50-day moving average has been trading below its 200-day moving average since June.
However, since the start of last year, the fund's returns sit at a positive 137%.
Buying shares of the Short Innovation ETF is certainly an easier option for investors than trying to take on a short position themselves in Tesla or Square where the risk will be much greater since the exposure will be in one stock as opposed to several. But whether you're long or short on ARKK, these are investments you'll want to a keep a close eye on as they can move quickly.
