Cathie Wood’s ARK Innovation ETF is down 10% this week, approaching a new low for the year – fr

Cathie Wood’s ARK Innovation ETF is down 10% this week, approaching a new low for the year – fr

Star fund manager Cathie Wood’s flagship fund is hit this week and sees significant investor inflows amid a liquidation backdrop.
ARK Innovation shares fell another 3% on Thursday, bringing its weekly losses to nearly 10%. The “disruptive innovation” ETF rebounded from its February lows of the year earlier in the session, a level many investors see as a barometer for the broader tech sector.

Almost $ 770 million left Ark Innovation last week. Ark Invest – including its five core ETFs – has lost around $ 1.1 billion from investors in the past seven days, according to FactSet.

Ark Innovation is over 32% of its February 2021 high, after which the ETF spiraled amid concerns about rising interest rates. Some of Ark Innovation’s main holdings were very successful on Thursday. Teladoc Health fell 3%. Square and Roku fell 3% and 8% respectively. DraftKings fell almost 8%.
Many investors view Wood’s funds as an indicator of pockets of market growth. Such weakness in the absence of an obvious excuse such as rising rates could worry some market participants. Additionally, tech stocks generated windfall profits last week, but the company’s stocks seemed to have the “good news” in mind.

Wood, as usual, is staying the course during the weakness of his big names. Ark Innovation bought DraftKings, Twilio, Teladoc Health and Invitae on Wednesday. Ark Next Generation Internet ETF bought 140,000 shares of Pelton on Wednesday after falling about 15% due to the treadmill recall debacle.

Wood is steadfast in his long-term investment philosophy and takes advantage of volatility to double his highest conviction choices. Ark Invest COO Tom Staudt told CNBC that “Ark’s long-term goal is to buy if a name has been minted for short-term reasons or to sell if a name is exuberant in the short term ”.

Wood’s other ETFs also came under intense selling pressure on Thursday. The Ark Next Generation ETF has lost 2.5%, bringing its losses since the start of the week to almost 9%. The ETF Ark Genomic Revolution and the ETF Ark Autonomous Technology and Robotics lost 2.8% and 0.2% respectively. The pair is down 10.3% and 4.3% this week alone. The Ark Fintech Innovation ETF fell 1.6%, bringing its losses for the week to over 6%.

The ETF Ark Autonomous Technology and Robotics is Wood’s only fund in the green for the year.

Cathie Wood will appear on CNBC’s “Closing Bell” Friday at 3 p.m. ET.

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