SJIM and LJIM Cramer ETF

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SJIM and LJIM Cramer ETF


An enterprising and clearly meme-savvy fund manager out there, Tuttle Capital Management has actually filed prospectuses for two Cramer-tracking funds:

  1. The Inverse Cramer ETF (SJIM)
  2. The Long Cramer ETF (LJIM)

In retrospect, I'm not surprised. Tuttle Capital is known for its hilarious yet strangely effective ETF lineup. 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. 

How the Inverse Cramer ETF might work

Make no mistake, SJIM and LJIM will be actively managed funds. 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. This is not your vanilla buy-and-hold index fund. 

According to Tuttle Capital, both ETFs will hold 20-25 Cramer picks in an equally weighted allocation. 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. I'm curious to see if there will be large capital gains distributions every year due to this. 

SJIM is the more interesting fund in my opinion and will require some intricacies to carry out its daily inverse exposure target. This will likely necessitate shorting or the use of total return swaps. 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. 

In many ways, SJIM is basically a long-short alternative fund. If Cramer is bullish a pick, the fund shorts it. If Cramer is bearish on a pick, the fund goes long on it. Buying the fund means basically betting against Cramer in the most explicit and hilarious of ways.

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