Investment Managers Series Trust is looking to launch an exchange-traded fund that seeks to provide twice the returns of Cathie Wood’s Ark Innovation ETF, Bloomberg reported.
Dubbed as the AXS 2X Innovation ETF (TARK), the fund aims to generate 200% of the performance of ARK Innovation ETF, which has dropped 55% from its peak and is down 25% year-to-date.
Bets against ARKK have been increasing, with short interest as a percentage of shares outstanding at 9.4%. Data indicates that investors expect the fund to decline even further.
The fund could take at least 75 days before its launch, with Investment Managers Series Trust also applying at the same time to create a fund providing the inverse of KraneShares CSI China Internet ETF.
TARK is expected to be launched in time for investors to take advantage of the rebound of speculative shares should the bond selloff moderate. ARKK is up 3.29%, while KWEB is down 0.67%.