SJIM ETF Faces Imminent Shutdown—What Investors Need to Know

The Board of Trustees of Northern Lights Fund Trust IV has decided to wind down the Inverse Cramer Tracker ETF, bringing this controversial short-tracking fund’s journey to an end. Trading on CBOE BZX Exchange will halt on February 13, 2024, marking the final opportunity for shareholders to exit their positions through normal market channels.

Key Dates Investors Must Remember

February 13, 2024 (Trading Cutoff): The last trading day for the Inverse Cramer Tracker ETF shares on CBOE. After this date, authorized participants can no longer create new units.

February 23, 2024 (Liquidation Date): All remaining positions will be converted to cash distributions based on net asset value at that moment. Shareholders who haven’t sold by this deadline will automatically receive their liquidation proceeds.

What Happens Between These Dates

From February 13 to February 23, the fund enters a liquidation phase where normal market dynamics no longer apply. During this window, shareholders can only offload their shares through willing broker-dealers—there’s no guarantee a liquid market will exist. The fund will be converting its holdings into cash, meaning the Inverse Cramer Tracker ETF will no longer track its underlying benchmark during this period.

Authorized Participants can still redeem share baskets for pro-rata portfolio portions through the Closing Date, though this window is now quite narrow.

Tax Implications Matter

The liquidation constitutes a taxable event. Investors will receive capital gains and dividends as part of their cash settlement, which must be reported for tax purposes. Shareholders should consult tax advisers before the Closing Date to understand their specific tax obligations.

Why the Shutdown?

Matthew Tuttle, the fund’s portfolio manager, explained that while the inverse Cramer Tracker concept successfully highlighted the risks of blindly following celebrity stock pickers like Jim Cramer, investor appetite for long/short portfolios never materialized as expected. Retail traders gravitated toward more volatile products instead.

“We feel we accomplished the mission,” Tuttle stated, pointing to Tuttle Capital Management’s success with other product lines as the primary reason for reallocating resources away from this fund.

What’s Next

Tuttle will continue publishing his free daily Cramer Tracker newsletter at CramerTracker.SubStack.com for those wishing to monitor recommendations independently. His firm also maintains free reports on contrarian strategies at TuttleCap.com.

Important Reminder: Short selling positions carry unlimited loss potential since short prices can rise indefinitely. Shareholders must act before February 13 to avoid forced liquidation at potentially unfavorable prices.