Cathie Wood’s ARK Innovation ETF (NYSE Arca:ARKK) has struggled mightily over the past year, falling 60% as many top growth stocks have been in the midst of large selloffs. There has even been an exchange-traded fund (ETF) created for the sole purpose of betting against the ARK: the Tuttle Capital Short Innovation ETF (NASDAQ:SARK). The goal is to get the inverse return of the ARK. And year to date, its returns are a positive 62% -- nearly opposite of the ARK’s 52% decline in 2022.
However, sooner or later, the ARK could be due for a turnaround. And for investors who want to bet on its recovery, there’s yet another ETF. This one, will allow you to double-down on the ARK. Instead of SARK, it’s the TARK – the AXS 2X Innovation ETF (NASDAQ:TARK). Its aim is to double the return of the ARK each day. The leveraged ETF is a riskier option for investors, but for those who are confident that the ARK has bottomed out and that could be due for a rally, this is one way to bet on the fund’s recovery.
The ARK does, after all, possess some of the world’s top growth stocks, including big names like Tesla (NASDAQ:TSLA), Block (NYSE:SQ), and Coinbase Global (NASDAQ:COIN). TARK has a net expense ratio of 1.15%, which is much higher than the ARK’s 0.75% rate and that which other ETFs charge. However, if the ARK does end up recovering, then TARK could more than make up for that difference with superior gains.
