Betting Against the Ark ETFs Is Good for Cathie Wood
Anything that can bring attention and trading volume to a fund is positive for its long-term staying power.
The old cliché that there is no such thing as bad publicity is proving true in the market for exchange-traded funds. Here, products are abundant but attention and liquidity are a scarcity, especially for funds that aren’t cheap and are serving up some kind of “active” strategy. So anything (within reason) that can bring attention and trading volume to an ETF is generally a good thing for its long-term staying power.
And this is exactly what a proposed new ETF designed to bet directly against Cathie Wood’s popular, successful and controversial flagship Ark Innovation ETF would do. The Short ARKK ETF is good for both the Cathie Wood haters and Cathie Wood herself.