(Bloomberg] — Cathie Wood’s ETF started to show promise as she slams the flagship fund with a surge in Treasury yields.

About 14% has been gained by the Tuttle Capital Short Innovation ETF, ticker SARK since its launch just 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.  Market watchers perceive Powell as being more likely to raise rates that his close rival Lael Mindard.

Bloomberg Intelligence says that although SARK only has $7.6million in assets since its launch, the company’s recent rise should attract more cash. 

“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.”

According to IHS Markit Ltd data, the current short interest in ARKK stands at 5.1%. This is slightly lower than the record 5.5% set earlier this month.

Wood’s bets have misfired as of late after ARKK’s dominant 150% rally in 2020. This year, the ETF’s performance has been below 13%. Despite the decline, investors continued to put money in ARKK. It is currently on pace for a $4.8 million inflow in 2021. 

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