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Tuttle Capital Management’s inverse Cramer Tracker ETF (SJIM) to cease operations

TL;DR

  • Tuttle Capital is closing its Inverse Cramer Tracker ETF (SJIM) due to weak performance.
  • SJIM lost 15% and has only collected $2.4 million since March 2023.
  • Experts warn that ETFs relying on celebrity endorsements may not last.

Tuttle Capital Management has announced the closure of its Inverse Cramer Tracker ETF (SJIM), a short-side betting fund designed to counter the investment recommendations made by television personality Jim Cramer. 

The decision comes after the earlier shutdown of its sibling ETF, the Long Cramer Tracker ETF (LJIM), in September 2023. Both ETFs were introduced in October 2022 to capitalize on the polarizing stock picks of Jim Cramer.

SJIM’s Objective and the Downfall

SJIM, an actively managed exchange-traded fund, sought to achieve its objective by engaging in transactions designed to perform the opposite of the returns of the investments recommended by Jim Cramer. 

However, the ETF struggled to gain traction in the market, and its short-side betting strategy proved challenging.

The fund experienced a significant loss of 15% on a total return basis since its launch in March 2023, leading to its decision to cease operations. Despite initial attention and interest in SJIM’s unique concept, it struggled to attract substantial assets, accumulating a mere $2.4 million.

Expert opinions on the ETF closure

Commenting on the closure of SJIM and similar ETFs, Jane Edmondson, Head of Thematic Strategy at TMX VettaFi, noted that many thematic ETFs exist in the market that may not be grounded in sound economic principles. She expressed concern about their sustainability, stating that “sadly, most of them are destined to fail.”

A Senior Bloomberg Analyst, Eric Balchunas, also weighed in, expressing regret over SJIM’s discontinuation. Balchunas believed that betting against Jim Cramer’s stock picks had potential, given his record of inaccurate calls. However, he suggested that the ETF’s long/short strategy hindered its ability to gain significant momentum.

SJIM’s final trading date

Investors in SJIM should note that the ETF is scheduled to stop trading on February 13, 2024. This marks the end of an experiment that aimed to capitalize on the market’s reaction to Jim Cramer’s stock recommendations.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ibrahim Abdulaziz

A fervent advocate, Ibrahim shares his wealth of knowledge on crypto and blockchain technology in an engaging and informative style. He frequents places where influencers gather for his next scoop. His vision is that the decentralized nature, security features, and potential for financial inclusion will drive widespread massive crypto adoption.

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