Will Jim Cramer's new ETF provide inverse performance?

New ETF plans to provide the inverse performance of investments recommended by CNBC’s Cramer. An easier way to bet against finance personality Jim Cramer is in the works.

What are the Cramer tracker ETFs?

The ETFs launched Thursday and are now available for investors to invest against or alongside Cramer. The Inverse Cramer Tracker ETF (CBOE: SJIM) and The Long Cramer Tracker ETF (CBOE: LJIM) are the two ETFs, offering short and long exposure to Cramer’s stock recommendations.

What is the Sharpe ratio of index one's inverse Cramer ETF?

Moreover, notice that the Sharpe ratio of Index One’s Inverse Cramer ETF is an atrocious -0.21 on a year-to-date basis. As a refresher, the Sharpe ratio measures the excess return that a portfolio generates, normalized by its volatility.

What is 'inverse Jim Cramer' trading strategy?

That represents the basis of our "Inverse Jim Cramer" trading strategy, which is a trading mechanism that inverts most of Cramer's top-mentioned stock recommendations and has so far proved successful in generating alpha on the market. Today's article is an update focusing on the strategy's performance during the third quarter of the year.