Tuttle Capital Management to launch pair of Jim Cramer ETFs
If you’ve ever set foot in the financial jungle known as #FinTwit or #FinTok, you’ve likely come across a Jim Cramer meme.
Which makes you wonder: Would betting against his trades perform well in the market? We’ll soon find out.
Tuttle Capital Management has filed to launch two exchange traded funds (ETFs) which trade based on Jim Cramer’s recommendations.
- Long Cramer ETF ($LJIM) — bets on his recommendations.
- Short Cramer ETF ($SJIM) — bets against his recommendations.
The expense fee on the ETF hasn’t been set, and it’s unsure how the trades will be tracked (bot or human?).
How have his recommendations performed?
A 2018 study by the Wharton School analyzed Jim Cramer’s performance between 2001-2017. His recommendations would have returned an annualized 4.08% — compared to the S&P 500’s 7.07% in the same time period.
One decision impacted his returns significantly. He prefers to hold ~50% of his portfolio in cash. Which meant he wasn’t fully invested during the market recovery in 2008.
Flashback: Past data shows missing the first couple of months after the bottom would have been a costly mistake.
The Average Joe: “Here for the memes, pass on the ETFs.”