TV personality Jim Cramer may be the most well-known stock picker. Now, investors can capitalize on the “Mad Money” host’s recommendations — right or wrong — with the launch of two actively managed ETFs.
Tuttle Capital Management announced the launch of the (SJIM ) and the (LJIM ), both of which begin trading on the CBOE today. The ETFs offer investors “one-ticker” access to take sides on what Cramer publicly recommends on CNBC or Twitter.
SJIM is an actively managed ETF that attempts to achieve the inverse of Cramer’s recommendations by going short on anything he recommends buying and going long on anything he doesn’t like. LJIM, meanwhile, goes long on anything that Cramer recommends buying.
“Jim Cramer is perhaps the most recognized stock picker to many retail investors, willing to offer buy or sell recommendations in an effort to educate the broader investment community,” said Todd Rosenbluth, head of research at VettaFi. “While he is both often right and wrong, as many of us should admit is true about ourselves, these new ETFs provide an opportunity to either follow in his recommendations or head in the exact opposite direction.
Rosenbluth added, however, that “investors need to be mindful that the fund’s time horizon for holding positions likely do not match theirs and proper due diligence is required. Rooting for or against someone is different than putting actual money behind their success or failure."
Tuttle Capital Management serves as the ETFs’ adviser.
“Love him or hate him, Jim Cramer is a polarizing figure,” said Matthew Tuttle, CEO and CIO of Tuttle Capital Management, in a news release announcing the launch of SJIM and LJIM. “We want to give investors on both sides of the debate a way to express their views and create products that can provide diversification to traditional portfolios.”