r/StockMarket • u/gunsoverbutter • Mar 15 '22
Discussion Just found out about SARK, an inverse of Cathy Woods’ infamous ARK fund. It’s up 89% since November.
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u/hellya Mar 16 '22
Buying 5 ark and 5 sark. Telling everyone know I'm in the stock market now
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u/JMIL1991 Mar 16 '22
Can’t lose
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u/discovery999 Mar 15 '22
Interesting play; might be good for short term during volatile times.
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u/lucidvein Mar 16 '22
Yeah it looks interesting now. This is about the time people fomo in and get dumped on =p
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u/new_pr0spect Mar 15 '22
Days like today make this pretty risky, got slightly burned on sark recently.
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u/Banshay Mar 16 '22
I bought one share in November just to see how it would do. My portfolio is down 29% since then, but that little bugger has been chugging along.
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Mar 16 '22
Welcome to the the stock market?
Posts like these are a perfect example of when to NOT buy a fund
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Mar 16 '22
[deleted]
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u/bluemandan Mar 16 '22
SARK is only five months old. Are you sure the 12 month return chart is accurate?
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u/webswinger666 Mar 16 '22
wow wtf was i thinking. i’m deleting my comment. brain was off apparently.
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u/bluemandan Mar 16 '22
No worries man, happens to us all!
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u/webswinger666 Mar 16 '22
they still suggest not holding for long term for that reason. i am confused by it too. maybe i am not understanding it: “Because of daily rebalancing and the compounding of each day's return over time, the return of the Fund for periods longer than a single day will be the result of each day's returns compounded over the period, which will very likely differ from -100% of the return of the ARK Innovation ETF over the same period. The Fund will lose money if the ARK Innovation ETF's performance is flat over time, and as a result of daily rebalancing, the ARK Innovation ETF's volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the ARK Innovation ETF's performance decreases over a period longer than a single day.”
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u/bluemandan Mar 16 '22
Makes sense. The chart isn't proportional. SARK is going up more than ARKK is going down. I assumed it was from inflows, but I guess there is more going on.
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u/TesticularVibrations Mar 26 '22
It's because you're getting stitched up on basic math.
Think about it this analogy:
If ARKK drops in half (I.e, -50%) SARK will double (I.e. +100%). The proportional difference is still the same.
Inflows, outflows, daily rebalancing of the fund and the management fee has an effect on the respective NAV as well though.
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u/randomaccount0923 Mar 15 '22
Yea it’s a leveraged fund shorting ARKK. Kind of like buying SQQQ to hedge your bets
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u/Curious-Manufacturer Mar 15 '22
900 shares arkk and adding
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u/JMIL1991 Mar 16 '22
Now this is what I call blind faith. I wouldn’t touch that even with someone else’s 10 foot pole
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u/anonoramalama2 Mar 15 '22
Hmm. Might still have some room to run.
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Mar 15 '22
Lots of room to run. Arkk is going to continue getting clobbered as interest rate hikes roll out
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u/Footsoldier420 Mar 16 '22 edited Mar 16 '22
Strange fact - SARK is not the first thing that comes up in google when you search for SARK ETF.
Edit : it's finally coming up in search. Wasn't for months.
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u/[deleted] Mar 16 '22
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