Star stock picker Cathie Wood’s top five ETFs were down more than 4% on Friday.
Photo:
Alex Flynn / Bloomberg News
ARK Investment Management LLC’s traded funds are firmly on a bear market after another round of sharp declines on Friday.
New York-based asset management company Cathie Wood’s five main ETFs, which selected shares, fell between 4% and 7% in recent transactions as technology and other fast-growing stocks continued to sell. . These declines pushed ARK funds down by more than 20% from the most recent highs, meeting the traditional threshold used to determine when stocks and indices entered a bear market.
ARK ETFs have crossed the wider stock market. The S&P 500, which ARK uses as a benchmark for its own funds, is down about 5% from its February 12 high.
ARK’s flagship innovation fund was hardest hit. The $ 23 billion fund fell 31 percent from its previous high, with about half of those falls coming this week alone. The declines for ARK’s other funds were not far off. This is probably because a number of shares in Ms Wood’s funds are largely exposed to the growth trade, which the market has started in the face of a steep yield curve.
Some of the ARK funds have heavy positions in companies such as electric car maker Tesla Inc.,
Roku streaming service Inc.
and digital payment company Square Inc. All three stocks fell by at least 28% from the most recent highs.
Some of the recent losses seem to drive more investors out of ARK funds. After two consecutive days of inflows, investors on Thursday withdrew $ 150 million from the ARK innovation fund and $ 112 million from its genomics fund.
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