The Launch of the Inverse Cramer ETF SJIM

Some people really dislike Jim Cramer. He, on his show mad money, gives his opinions regarding various stocks that he tells people to either buy or sell. He doesn't always get it right though, and many people believe that he is almost always wrong. It's become a popular meme to just do the opposite of everything that Jim Cramer says when picking stocks. Tuttle Capital, who also created the ETF SARK which shorts Cathie Wood's Ark fund, has created two ETFs LJIM which is meant to follow Jim Cramer's recommendations and SJIM which is meant to inverse Jim Cramer's recommendations. 

SJIM will not be able to perfectly inverse everything that Jim Cramer says though. This is a good thing. If one really did do the opposite of everything that Jim Cramer says, they would have gone bankrupt shorting Apple, Facebook, Tesla, etc. Most likely, the fund will mostly just hold stocks that Cramer has been most bearish on. I don't think that it will be able to hold every stock that Cramer is bearish on though as he gives so many stock predictions all the time that the fund will not have the funds to keep doing so.

LJIM will also not be able to perfectly replicate everything that Cramer says. It'll also likely hold stocks that Cramer has been the most bullish on. I believe that the fund will buy the stocks that Cramer pushes the most. Again, Cramer gives so many stock recommendations everyday that I don't see how the fund could actually buy every stock that Cramer says is a buy.

Jim Cramer is not very happy about the creation of these ETFs which is obviously not very surprising, but he says that he is up for the challenge. I'm excited for these funds to release what stocks they are investing in. I'm also very excited to see which fund actually does better over the next 5-10 years. My prediction is that LJIM will do better than SJIM, but I believe that both of them will underperform the S&P. Also, before one invests into one of these funds, it is important to note the fees. Both funds have an expense ratio of 1.12%, so it is expensive to hold these funds.

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