A new fund, TARK is planning to deliver twice the return of the ARK Innovation ETF, according to a report by Bloomberg on Wednesday.
- The AXS 2X Innovation exchange-traded fund (ticker TARK) will anticipate 200% of the performance of the ARK Investment’s main fund.
- The launch of the product from Investment Managers Series Trust is set for a minimum of 75 days. But the timing is daring. ARKK is already down 55% from a peak after falling 25% in 2022 alone.
- In selloff this year, investors are dumping the expensive-looking companies with unexpected profit projections that are beloved by the ARK co-founder and her team.
- The bullish situation is that the planned ETF will come in time to capitalize on any rebound in favor of speculative shares when the bond selloff slows down.
Meanwhile, bets against ARKK are surging, with record short interest as a proportion of shares outstanding stood at 9.4%.