The Jim Cramer Inverse ETF and How to Pick Against Him

By Josh Katzowitz, WCI Content Director

In times like these when, thanks to social media, you can yell at the world’s richest people and troll those who hold the most power, why not take the musings of one of the most well-known (and most-mocked) stockpickers and then use it as evidence for why you probably shouldn’t be listening to him in the first place. That’s what the person behind the popular @CramerTracker Twitter account has done, and it’s the reason why an ETF has been created that allows you to do the exact opposite of what famed analyst Jim Cramer says you should do.

If you hate Jim Cramer’s stock picks, here’s some good news. You can make money off wagering against him.

In October, Tuttle Capital Management filed to the SEC a new Inverse Cramer ETF that would basically invest in the opposite of what the famed host of Mad Money advises. How will that work? According to the filing,

“Under normal circumstances, at least 80% of the Fund’s investments is invested in the inverse of securities mentioned by Cramer. The Fund’s adviser monitors Cramer’s stock selection and overall market recommendations throughout the trading day as publicly announced on Twitter or his television programs broadcast on CNBC, and sells those recommendations short or enters into derivatives transactions such as futures, options, or swaps that produce a negative correlation to those recommendations. The Fund goes long on stocks or ETFs that represent sectors that Cramer is negative on. The Fund uses Index ETFs and inverse Index ETFs to take the opposite side of Cramer’s announced market view.”

It’s a clever troll. But the Inverse Cramer ETF also might ultimately be profitable—at least for now.


Picking the Opposite of What Jim Cramer Does

The same company that is starting the Inverse Cramer ETF also created an inverse ETF for what’s inside Cathie Wood’s Ark Innovation Fund (ARKK). For the year, ARKK is down about 59%. SARK, which is ARKK’s inverse, is up 54%.


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