An exchange-traded fund (ETF) that aimed to profit by shorting stocks recommended by CNBC’s “Mad Money” host Jim Cramer will soon cease operations after failing to attract significant assets and delivering negative returns.
The Inverse Cramer ETF (ticker: SJIM), launched in March 2023 by Tuttle Capital Management, will be liquidated on Feb. 13, the firm announced last week. The fund had attempted to make money for investors by shorting the stocks touted by Cramer on his popular investing advice show.
However, in roughly 10 months of trading, the ETF struggled to gain traction with investors, pulling in only $2.4 million in assets. It also posted a negative 15% return over that period.
Tuttle Capital had previously tried a long-only strategy keyed to Cramer’s picks, launching its Long Cramer ETF (LJIM) alongside the short fund last year. But LJIM proved similarly unpopular, attracting little over $1 million while gaining just 2.2% before being scrapped in August.
In a statement, Tuttle Capital CEO Matthew Tuttle said the ETFs had accomplished their mission of “pointing out the danger of following TV stockpickers, Jim Cramer specifically, and the total lack of accountability.” Cramer has become known among some traders for stock tips that sometimes fail to pan out.
The demise of the Inverse Cramer ETF comes as Cramer has been urging investors to sell out of Bitcoin">Bitcoin, despite the Mad Money host’s own track record of conflicting statements on the cryptocurrency over the years.
Tuttle said his firm no longer had the bandwidth to keep the Cramer ETFs going while also operating its other, more successful funds. Shareholders in SJIM will receive cash distributions based on the fund’s net asset value when it wraps up operations on Feb. 23.
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