In the dynamic world of exchange-traded funds (ETFs), not every bold venture meets with success. Such is the story of George Noble’s Noble Absolute Return ETF (NOPE), which is set to close its doors less than a year after its inception.
Launched on September 29 of the previous year, NOPE was an actively managed ETF that took audacious short positions on prominent companies, including the likes of Tesla Inc. and ARK Investment Management. However, the fund’s journey was short-lived. With less than $19 million under its management and a staggering decline of nearly 70% in its performance, the decision to shutter the ETF was announced. Trading will cease on August 24, and the fund will officially dissolve on August 30.
The ETF’s trajectory was a roller-coaster ride. In a volatile bull market, Noble’s contrarian approach initially seemed promising, delivering returns of approximately 30% by the end of its launch year. This success was short-lived. As the market began its recovery in the first half of 2023, Noble’s short strategies faltered, leading to significant losses.