Breaking: Inverse Cramer Tracker ETF Is Shutting Down with a Loss of 15%

The Inverse Cramer Tracker ETF (SJIM), an ETF introduced by Tuttle Capital Management to track the recommendations of the Television personality Jim Cramer, is reportedly shutting down. The ETF, which created headlines in October 2022, is joining the path of its sibling ETF, Long Cramer Tracker ETF (LJIM), which was shuttered earlier.

In October 2022, Matthew Tuttle, the Chief Executive Officer of Tuttle Capital Management, filed two ETF applications to bet against Jim Cramer’s stock recommendations. While LJIM was introduced for long-side betting on Cramer’s stock picks, SJIM was meant for short-side betting against the same. The prospectus read,

The fund is an actively managed exchange-traded fund that seeks to achieve its investment objective by engaging in transactions designed to perform the opposite of the return of the investments recommended by television personality Jim Cramer.

Commenting on the failure of a majority of ETFs, Jane Edmondson, Head of Thematic Strategy at TMX VettaFi, stated that there exist a lot of “fad thematics, not tied to sound economic principles.” He added, “Sadly, most of them are destined to fail.” Senior Bloomberg Analyst Eric Balchunas shared an X post, commenting on the matter. Expressing his concern over the end of the Inverse Cramer Tracker ETF, he wrote,

Sad to see this one go tbh.. I really think this idea had potential given his knack of spectacularly wrong calls. Problem IMO wasn’t idea but design, it was long/short strategy and so it could never really rip, get a shiny object moment.

LJIM was shut down in September 2023, and SJIM will stop trading on February 13. The decision came following a loss of 15% in inverse fund on a total return basis since its launch in March 2023. So far, the ETF has merely accumulated $2.4 million in assets.

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