Cathie Wood's ARKG is down 30%, and investors are pulling money out of it
By Julianna
Investors appear to be losing patience with Ark Investment Management's genomics fund.![]()
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Investors appear to be losing patience with Ark Investment Management's genomics fund.
$ARK Genomic Revolution ETF(ARKG.US$ is an actively managed ETF that focus on health care, information technology, materials, energy, and consumer discretionary.
Companies within ARKG are focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments and advancements in genomics into their business.
- according to ARKG fund description.
However, ARKG is down 30% this year as investors shun health-care stocks in favor for more cyclical names that perform well during an economic recovery. Even so, this ETF is faring far worse than the broader biotech sector, with the $Dow Jones U.S. Biotechnology Index(.DJUSBT.US$ up 11.35% this year.![]()
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ARKG is currently trading at $65.16 a share, 43% lower from its peak in this February. The genomics fund has also seen the largest outflows among Ark's ETFs this year.![]()
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It's interesting that typically loyal Ark investors have been bailing on the ETF.
The fund's assets have been chopped in half since February. While I don't believe the ETF is experiencing some of sort of 'doom loop,' clearly the outflows are putting downward price pressure on the underlying holdings and testing the will of remaining fund owners.
- said Nate Geraci, president of The ETF Store, an advisory firm.
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ARKG's top two holdings, $Teladoc Health(TDOC.US$and $Exact Sciences(EXAS.US$, heavily impact its performance, with drops of 47% and 33.5% this year, respectively.![]()
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The recent outflows may be due to investors looking for shorter-term opportunities into the year-end and freeing up cash.
- said Sylvia Jablonski, chief investment officer at Defiance ETFs.
Ark Chief Executive Officer Cathie Wood is well-known for prioritizing longer term investments over short-term gains.![]()
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This is a 5-10 year hold. AI in health care is going to change the way that we can predict, treat and manage the most difficult diseases like cancer, and the Ark fund gives investors access to the companies who are on the cutting edge of that research.
- Jablonski added.
Have you ever invested in the Biotechnology sector? Do you agree with Jablonski's opinion?![]()
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Source: Bloomberg
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搞经济 抄底 加仓 : She doing great. keep it up
Residue 1 : Nothing to say bcos she believes in BTC but not Doge Shib and TesLa
mRNA-1273 : I’m holding onto arkg;) I hope I’m not wrong
MonsterJar : Still holding it.
JoeK80 : par
iSpyderTrader : Yes, I have invested in the biotechnology sector. The future will be this sector as things will be changing. Today there is more biotechnology accepted by humans than 20 years ago. And more humans accept it as this becomes a necessity.
I do agree with Jablonski, because AI is changing a lot. It will change the way we do things. On the other hand it does make us a bit lazy as well, but that is part of what happens as we become more dependent. We do have enough data so AI will help analyze with the model we have made
godhand999 : Most of ark’s stocks are dreaming stocks n overly expensive. It will perform badly in bear markets.
BigBucks101 : Good
ttstansg99 : Buy the dip
星空探索 : I also have less faith.
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