The ETF designed to bet against Cathie Wood is starting to deliver as a jump in Treasury yields—the bogeyman stalking growth shares—slams her flagship fund.

The Tuttle Capital Short Innovation ETF (ticker SARK) has gained roughly 14% since launching two weeks ago. SARK—originally named the Short ARKK ETF—seeks to track the inverse performance of Wood’s ARK Innovation ETF (ARKK) through swap contracts.

Fueling SARK is a sell-off in the highly valued tech companies that populate Wood’s biggest ETF, which commands $18 billion in assets. President Joe Biden’s renomination of Jerome Powell as Federal Reserve chairman sparked a surge in yields, hitting duration-sensitive growth shares.  Powell is perceived by market-watchers as more likely to raise rates than mooted rival Lael Brainard.

While SARK has only accumulated about $7.6 million since launching, its recent run-up should help attract cash, according to Bloomberg Intelligence. 

“Timing is everything for new ETF launches and SARK got lucky in that department. To pop 10% right off the bat should help it get going and attract audience,” BI senior ETF analyst Eric Balchunas said. “Beyond performance chasing, its main value add is convenience—it makes betting against Cathie Wood a mere click of a button.”

Short interest in ARKK is currently 5.1% of shares outstanding, down slightly from a record 5.5% reached earlier this month, according to data from IHS Markit Ltd.

Wood’s bets have misfired as of late after ARKK’s dominant 150% rally in 2020. The ETF has slipped over 13% so far this year. Despite the drop, investors have continued to pour money into ARKK, which is on track for a $4.8 billion inflow in 2021. 

This article was provided by Bloomberg News.