The financial firm Tuttle Capital Management has launched two new exchange-traded funds (ETFs) that allow investors to bet on the daily stock picks made by CNBC’s Jim Cramer on his show “Mad Money”. The SJIM ETF is designed to perform the opposite of Cramer’s recommendations, while the LJIM ETF backs his picks. Both ETFs consist of a few dozen equally weighted equity securities of any market capitalization and carry an expense ratio of 1.2%. The SJIM fund’s volume was 12 times that of the LJIM on its first day of trading.

The strategy of Tuttle Capital Management’s new exchange-traded funds (ETFs) that allow investors to bet on the daily stock picks made by CNBC’s Jim Cramer on his show “Mad Money” is relatively straightforward.

The LJIM (Long Cramer ETF) backs the stock picks made by Cramer on his show, with the aim of profiting from their success. Meanwhile, the SJIM (Inverse Cramer ETF) is designed to perform the opposite of Cramer’s recommendations, with the aim of profiting from their failure.

Both ETFs generally consist of a few dozen equally weighted equity securities of any market capitalization, with holdings based on Cramer’s recommendations from the show and social media. The funds aim to hold positions for no longer than a week under normal circumstances. The funds use an active management approach, with much discretion used when deciding what to go long and short based on what Cramer says. Under normal circumstances, at least 80% of the SJIM fund is invested in the inverse of securities mentioned by Cramer.

Cramer and Tuttle have had a feud over Tuttle’s creation of the SJIM and LJIM ETFs. Tuttle has publicly stated that the new funds are designed to provide some level of accountability for Cramer’s stock picks, as he believes that there is none in the media. Cramer, in turn, has welcomed the creation of the funds and has stated that he has been betting against others for over 42 years, and he welcomes all comers. While CNBC, where Cramer has been hosting “Mad Money” since 2005, has thrown its support behind him, Tuttle has gone ahead with the creation of the funds, which allows investors to bet on Cramer’s daily stock picks.

St. Louis Federal Reserve President James Bullard expressed confidence that the Fed can beat inflation and advocated for a more aggressive interest rate hike to combat it. Bullard believes that a more aggressive move now would give the Federal Open Market Committee a better chance to bring down inflation, which is still high despite falling from its levels in 2022. He advocates for the FOMC to reach the so-called terminal rate, which he believes is nearly 5.4%, and then feel out what needs to be done. He believes that a more aggressive move would be part of a strategy that he thinks ultimately will be successful in controlling inflation.

Higher Interest Rates and Innovation
Higher interest rates generally hurt innovation because they increase the cost of borrowing money. This makes it more expensive for companies to raise capital for research and development, which is critical for innovation. With higher borrowing costs, companies may have less money available to invest in new technologies, products, and services. This can slow down innovation, as companies are less able to take risks and make investments that may not pay off in the short term.

Additionally, higher interest rates can also make it more difficult for startups to raise capital, as investors may be more hesitant to invest in riskier ventures when they can earn higher returns on more stable investments. This can limit the number of new companies entering the market, reducing competition and potentially slowing down the pace of innovation.

The ARKK Innovation Fund is an actively managed exchange-traded fund (ETF) that seeks to invest in companies with disruptive innovation, defined as companies that are expected to benefit from the development of new products or services, technological improvements and advancements, and/or changes in consumer behavior and preferences. The fund is managed by ARK Investment Management LLC, which is known for its focus on innovative and disruptive technologies. In 2022 with interest rates on the rise, the ARKK fund lost over 66%.

The AXS Short Innovation Daily ETF (ticker symbol: SARK) is an exchange-traded fund (ETF) that aims to provide inverse daily returns to the ARK Innovation ETF (ARKK). The fund is actively managed and seeks to achieve a return of -1x the daily price and yield performance of the ARK Innovation ETF by entering into a swap agreement on the ARKK. In 2022 the SARK return was 81.95%.

With Interest rates on the rise, taking a short position in the ARK Innovation ETF, the AXS Short Innovation Daily ETF provides investors with a way to potentially profit from a decline in the value of the ARK Innovation ETF. It is important to note that due to the daily resetting of the fund’s exposure, its performance may not match the inverse of the ARK Innovation ETF’s returns over longer periods.

With the Fed’s direction clear and interest rates still in an upward trend. Here are some funds that short the market. In the stock market, shorting refers to the practice of borrowing shares of a stock from a broker, selling those shares in the open market, and then buying them back at a later time to return to the broker. Shorting is a way for traders to profit from a decline in the price of a stock. If the stock price goes down after the short sale, the trader can buy the shares back at a lower price and return them to the broker, pocketing the difference as profit. However, shorting involves a high level of risk and is not recommended for inexperienced investors.

A short ETF, also known as an inverse ETF or a bear ETF, is an exchange-traded fund that seeks to provide returns that are the opposite of a particular stock market index or benchmark. These funds use various financial instruments, such as futures contracts, swaps, and options, to achieve their investment objective. The goal of a short ETF is to profit from a decline in the underlying index or asset. Short ETFs are considered to be high-risk investments and are typically used by investors who want to hedge against potential losses or speculate on a market downturn. It’s important to note that short ETFs are designed to provide inverse returns on a daily basis and are not meant for long-term investments.

Here are some funds that Short the Market.

ProShares Short S&P 500 (SH): This ETF seeks to provide a return that is the inverse of the daily performance of the S&P 500 Index. SH attempts to achieve its investment objective by investing primarily in derivative instruments, such as futures contracts and swap agreements, that have economic characteristics similar to the S&P 500 Index.

ProShares UltraShort S&P 500 (SDS): This ETF seeks to provide a return that is twice the inverse of the daily performance of the S&P 500 Index. SDS attempts to achieve its investment objective by investing primarily in derivative instruments that have economic characteristics similar to the S&P 500 Index.

ProShares Short Dow30 (DOG): This ETF seeks to provide a return that is the inverse of the daily performance of the Dow Jones Industrial Average. DOG attempts to achieve its investment objective by investing primarily in derivative instruments that have economic characteristics similar to the Dow Jones Industrial Average.

ProShares UltraShort QQQ (QID): This ETF seeks to provide a return that is twice the inverse of the daily performance of the Nasdaq-100 Index. QID attempts to achieve its investment objective by investing primarily in derivative instruments that have economic characteristics similar to the Nasdaq-100 Index.

It’s important to note that inverse ETFs are designed for short-term trading and may not be suitable for long-term investors due to their compounding effects and potential tracking errors. Additionally, inverse ETFs may experience increased volatility and higher expenses compared to traditional ETFs. As with any investment, it’s important to carefully consider the risks and potential rewards before investing.

When 2001: A Space Odyssey came out in 1968, Artificial Intelligence seemed years away. 50 years later it’s everywhere, from self-driving cars to robot drones, to ChatGPT, it’s the New Frontier. Like the tech revolution of the last 30-40 years, businesses will be motivated to adapt to AI for the following reasons.

1. Increased efficiency and productivity: AI can automate various tasks and processes, reducing the time and effort required to complete them.

2. Improved decision-making: AI can provide data-driven insights and analysis that can help businesses make more informed and accurate decisions.

3. Enhanced customer experience: AI-powered chatbots and virtual assistants can provide personalized customer service and support around the clock.

4. Competitive advantage: AI can help businesses stay ahead of the curve by adopting innovative technologies and solutions that can offer a competitive edge in the market.

5. Potential for cost savings: By automating tasks and processes, AI can reduce labor costs and improve operational efficiency, potentially leading to cost savings over time.

NVIDIA Corporation (NVDA) has emerged as one of the dominant players in the artificial intelligence (AI) industry for several reasons:

1. NVIDIA’s GPUs are designed to process large amounts of data in parallel, which makes them ideal for machine learning algorithms. Their high-performance computing capabilities have made them the go-to choice for many AI applications, particularly deep learning.

2. NVIDIA has developed GPUs that are specifically designed for AI workloads. For example, their Tensor Cores are designed to accelerate the computations required for deep learning algorithms, such as matrix multiplications.

3. NVIDIA’s GPUs are used in a wide range of AI applications, from autonomous vehicles and healthcare to gaming and smart cities. This has allowed the company to gain a deep understanding of the various use cases for AI, and has allowed it to develop specialized solutions to meet the needs of different industries.

Use Case Scenarios for NVIDIA’s Products

1. Autonomous vehicles: NVIDIA’s AI-powered autonomous vehicle technology enables cars, trucks, and other vehicles to “see” and interpret their surroundings in real-time, allowing them to make decisions and take actions based on the data. NVIDIA’s technology is used by companies such as Mercedes-Benz and Audi to power their autonomous vehicles.

2. Healthcare: NVIDIA’s AI technology is being used to improve healthcare outcomes by enabling more accurate and faster diagnosis, drug discovery, and personalized treatment. For example, NVIDIA’s Clara platform uses AI to enable medical imaging analysis and diagnosis, and it is being used by hospitals and medical research centers around the world.

3. Gaming: NVIDIA’s AI technology is also used in the gaming industry to improve the graphics and performance of video games. NVIDIA’s Deep Learning Super Sampling (DLSS) technology uses AI to upscale graphics and improve the visual quality of games.

4. Smart cities: NVIDIA’s AI technology is being used to make cities smarter and more efficient. For example, NVIDIA’s Metropolis platform uses AI to enable real-time analysis of video data from surveillance cameras, enabling law enforcement and city officials to respond quickly to incidents and improve public safety.

5. Natural language processing: NVIDIA’s AI technology is being used to improve natural language processing (NLP) and speech recognition, which can enhance the accuracy and effectiveness of voice-activated virtual assistants, chatbots, and other applications.

ETF Exposure: NVIDIA Corporation is held in 376 U.S.-traded ETFs. The largest ETF holder of NVDA is the Vanguard Total Stock Market ETF (VTI), with approximately 71.08M shares.

Top 5 ETFs by weighting that hold NVIDIA Corporation (NVDA) stock:

1. Invesco QQQ Trust (QQQ)
2. Technology Select Sector SPDR Fund (XLK)
3. Vanguard Information Technology ETF (VGT)
4. iShares PHLX Semiconductor ETF (SOXX)
5. VanEck Vectors Semiconductor ETF (SMH)

TOP 5 Creations or Inflows (All ETFs) *Last 7 Days

VTV Vanguard Value ETF 758.88
VTV’s fund strategy is geared towards reducing risk by investing in stocks with strong fundamentals, such as a low price-to-earnings ratio, low debt-to-equity ratio, and positive cash flow. VTV follows a passive investment strategy, meaning that it does not actively manage the composition of the portfolio. Rather, it tracks a benchmark index, such as the S&P 500 Value Index, which is composed of stocks that meet the criteria for value investing.’

SQQQ ProShares UltraPro Short QQQ 503.08
SQQQ is an exchange-traded fund (ETF) that seeks to provide three times the inverse performance of the NASDAQ-100 Index. The fund invests in derivatives, such as index futures, options and swap agreements, designed to track the performance of the index.

KBWB Invesco KBW Bank ETF 503.05
KBWB was designed to provide investors with a low-cost, diversified way to gain exposure to the banking sector. The fund has an expense ratio of 0.35%, and it is rebalanced quarterly in order to maintain its exposure to the underlying index. The fund is also highly liquid, making it an attractive option for active traders. Investors should be aware that the fund is heavily tilted towards the large-cap banks, with more than 95% of the portfolio invested in the top 10 holdings. This means that the fund may be subject to larger swings in volatility than more broadly diversified funds.

AGG iShares Core U.S. Aggregate Bond ETF 480.42
The iShares Core U.S. Aggregate Bond ETF is a passively managed fund that seeks to replicate the total return of the Bloomberg Barclays U.S. Aggregate Bond Index. The index consists of a broad range of U.S. debt securities, including U.S. Treasury bonds, corporate bonds, mortgage-backed securities, and other types of debt securities. This provides investors with a diversified portfolio of securities, reducing the risk of investing in a single bond or bond fund.

VWO Vanguard FTSE Emerging Markets ETF 468.19
The Vanguard FTSE Emerging Markets ETF (VWO) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index. The underlying index is composed of large-cap, mid-cap, and small-cap stocks from emerging markets.

TOP 5 Redemptions or Outflows (ALL ETFs) *Last 7 Days

SPY SPDR S&P 500 ETF Trust -7,089.86
This ETF provides investors with instant access to a wide range of investments in the S&P 500, an index of 500 of the largest publicly traded companies in the United States.

LQD iShares iBoxx USD Investment Grade Corporate Bond ETF -1,046.40
LQD provides a diversified portfolio of investment-grade corporate bonds, offering investors exposure to a broad range of debt securities with fixed-income payments. The fund also offers a wide range of benefits, including low costs, liquidity, and potential for capital gains.

DIA SPDR Dow Jones Industrial Average ETF Trust -746.00
The DIA SPDR Dow Jones Industrial Average ETF Trust Fund (DIA) is an exchange-traded fund (ETF) that is designed to track the performance of the Dow Jones Industrial Average (DJIA). It is one of the most popular and widely-traded ETFs in the investment world, offering investors exposure to a broad range of large companies in the U.S. stock market.

HYG iShares iBoxx USD High Yield Corporate Bond ETF -677.66
The iShares iBoxx USD High Yield Corporate Bond ETF Trust Fund provides investors with access to a diverse portfolio of high yield corporate bonds

XLE Energy Select Sector SPDR Fund -563.18
The XLE Energy Select Sector SPDR Fund is an exchange-traded fund (ETF) designed to provide investors with exposure to the U.S. energy sector. Launched in December 1998, the fund seeks to track the performance of the Energy Select Sector Index. This index measures the performance of publicly-traded companies in the energy sector, including oil, gas, and other energy-related industries.

Analysis
Obviously, we have money moving back into safety as the fear trade is back on. Large Moves out of the SPY and DOW Funds, into the SQQQ to short technology which has run hot to start the year. Big moves out of Energy, which has been one of the most overdone trades of the past year.

The world of dividend ETFs is one of the hottest topics in the investment universe today- and the Yoda of dividend ETFs is JEPI, short for “Joint Equity Portfolio Investment”. JEPI has quickly become a major player in the dividend ETF space, and for good reason. It has the potential to maximize income streams for investors who are looking to supplement their current income or build a reliable retirement income.

At its core, JEPI is a portfolio of multiple dividend-paying stocks that are carefully selected and monitored for optimum performance. This portfolio is designed to provide a steady and consistent stream of income to investors. The beauty of JEPI is that it takes the guesswork out of choosing individual stocks and instead provides a well-rounded and diversified portfolio that is managed by experts.

JEPI’s portfolio of stocks is designed to maximize income streams for investors in a few different ways. First, JEPI’s portfolio contains stocks that pay out regular dividends. This means that investors can count on receiving consistent income on a regular basis. Second, JEPI strives to select stocks that have the potential to increase in value over time. This means that investors can potentially benefit from capital appreciation as well as dividend income. Third to generate revenue in sideways or down markets, the JEPI strategy involves writing covered calls to generate premiums.

In addition to its portfolio of dividend-paying stocks, JEPI also has a number of other features that make it an attractive investment option. Its fee structure is very competitive, and it offers a number of tax-advantaged options that can help investors save money. It also has a low tracking error, meaning that it tracks the performance of its underlying stocks very closely. This ensures that investors get the most out of their investment.

In short, JEPI offers investors the opportunity to maximize their income streams and build a reliable retirement income. Its portfolio of carefully selected stocks and thoughtful management make it a strong choice for any investor who wants to generate consistent income and benefit from potential capital appreciation. With JEPI, investors can rest assured that their money is in good hands and that their income streams will remain steady for years to come.