ARK Innovation fund falls to lowest level in over a year as Nasdaq Composite sinks toward correction
Cathie Wood’s flagship ARK Innovation ETF on Friday carved out lows not seen in more than a year, as the technology sector suffered through an omicron-inspired repricing that brought the Nasdaq Composite Index more than halfway to correction territory.
At last check, the ARK Innovation ARKK,
Wood formed ARK Investment Management about seven years ago, and is listed as one of the 100 Most Influential Women in U.S. Finance by Barron’s, but her flagship fund has been pounded in recent months and now stands over 40% beneath its Feb. 15 peak, FactSet data show.
The downturn for the Ark Innovation and the broader suite of ETF offerings from Wood comes after a stellar 2020 when last year, five of ARK’s seven ETFs returned an average of 141%, on the back of gains from companies such as Tesla Inc. TSLA,
However, gains for those companies have come off the boil, with Tesla down 15% in the past 30 days and Teladoc, representing the largest holdings with ARK Innovation, off 40% over the same period.
On Friday, one of the fund’s other holdings, DocuSign DOCU,
Meanwhile, another ARK fund was also struggling. The ARK Genomic Revolution ETF ARKG,
The decline for ARK funds comes as, the Invesco QQQ Trust QQQ,
The S&P 500 index SPX,
Wood has been committed to her investment approach, indicating that she didn’t plan to change course for her ETFs.
