At least with an ETF, your maximum risk is limited to your total investment. Otherwise, you'll have to actively manage dozens of positions, keep up to date with Cramer's news segments and Twitter, use margin to sell stocks short, or fiddle with options. If you're dead set on betting against Cramer, SJIM might be one of the safer ways to do so. Inverse Jim Cramer Q4 22 (Quiver Quantitative) A 100 million investment would have compounded to slightly more than 147.20 million as of today if one went against the CNBC hosts stock-picking. SJIM could feasibly post a positive long-term return if Cramer was consistently wrong with his picks over the short term, the fund doesn't employ leverage (which amplifies volatility drag), and keeps expense ratios low enough. Most inverse funds have high negative carry due to the positive expected returns of the underlying, volatility drag, and high expense ratios. Thus, the best-case scenario is a sudden, volatile movement against one of Cramer's recommendations that the fund trades in and out of. The inverse exposure will likely be reset daily like most inverse ETFs on the market. What is the bull case for SJIM then? In a nutshell, the fund would likely outperform if just over half of Cramer's picks were wrong in the short term. Buying the fund means basically betting against Cramer in the most explicit and hilarious of ways. We explore the inverse Cramer ETF based on Jim Cramer the former fund manager and CNBC Mad Money host. If Cramer is bearish on a pick, the fund goes long on it. Thematic ETFs cover almost every market niche. If Cramer is bullish a pick, the fund shorts it. In many ways, SJIM is basically a long-short alternative fund. An ETF that generated headlines in October 2022 is shutting down. I'm curious to see if the team at Tuttle plans on using options given their complexity and susceptibility to time decay and changes in implied volatility. Cramer’s Lightning Round: ‘I don’t like AT&T’.

This will likely necessitate shorting or the use of total return swaps. SJIM is the more interesting fund in my opinion and will require some intricacies to carry out its daily inverse exposure target. I'm curious to see if there will be large capital gains distributions every year due to this. Because Cramer often makes his picks live on TV (or via tweets), the fund will likely have significant turnover to maintain low tracking error with Cramer's recommendations.

This is not your vanilla buy-and-hold index fund.Īccording to Tuttle Capital, both ETFs will hold 20-25 Cramer picks in an equally weighted allocation. Although Index One was able to construct an Inverse Cramer tracking index, the actual operations of a Cramer-based fund would be significantly more complex. Make no mistake, SJIM and LJIM will be actively managed funds. Case in point, their earlier Short Innovation Daily ETF (SARK) that bet against Cathie Wood and her funds is still up 73% year-to-date. Tuttle Capital is known for its hilarious yet strangely effective ETF lineup.

Inverse jim cramer twitter