The Inverse Cramer ETF, which allowed investors to bet against the stock picks of television personality Jim Cramer, is shutting down. This ETF, launched by Tuttle Capital in October 2022, aimed to provide investors with a way to profit from Cramer’s stock picks by taking the opposite position. However, the fund has now been deemed to be in the best interest of shareholders to shut down and liquidate.
The decision to close the fund comes after the Long Cramer ETF, which bet on Cramer’s stock picks, was shut down in September 2023. The Northern Lights Fund Trust IV Inverse Cramer ETF (SJIM) will have its last day of trading on February 13, with proceeds expected to be distributed to shareholders on February 23.
Tuttle Capital CEO Matthew Tuttle stated that the mission of the fund was to highlight the dangers of following TV stockpickers like Jim Cramer and the lack of accountability. However, Tuttle also acknowledged that retail investors are more focused on volatile products and that interest in the Inverse Cramer ETF did not fully materialize.
Tuttle attributed part of the fund’s lack of success to the timing of Cramer’s stock recommendations, particularly his “Magnificent 7” picks, which included stocks like Apple, Amazon, Alphabet, Microsoft, NVIDIA, Meta Platforms, and Tesla. While these stocks performed well, Tuttle believes that the fact that the Inverse Cramer ETF did not decline as much as expected is a testament to Cramer’s stock-picking abilities.
Despite the closure of the Inverse Cramer ETF, Tuttle remains interested in Cramer and will continue to write the Cramer Tracker newsletter. He also expressed openness to launching the fund again in the future but noted the difficulty of doing so with Cramer recommending the Magnificent 7 stocks.
Tuttle Capital recently launched the Tuttle Capital 2X Inverse Regional Banks ETF (SKRE), which allows investors to bet against the performance of regional banks. Tuttle highlighted that this ETF was created in response to Cramer recommending buying Silicon Valley Bank, as there was no ETF available at the time to short regional banks.
In conclusion, the Inverse Cramer ETF is shutting down after failing to gain sufficient interest from investors. While the fund aimed to profit from betting against Jim Cramer’s stock picks, it was ultimately deemed in the best interest of shareholders to liquidate the fund. Tuttle Capital CEO Matthew Tuttle stated that the timing of Cramer’s stock recommendations and the focus of retail investors on volatile products contributed to the fund’s lack of success. Despite this setback, Tuttle remains interested in Cramer and plans to continue writing the Cramer Tracker newsletter.
