As ARKK drops 20% so far this year, Cathie Wood's fund is wiping out its outperformance versus the S&P 500
With another 1.5% drop on Tuesday, the tech-heavy $ARK Innovation ETF(ARKK.US$ is closer to wiping out its famous outperformance versus the $S&P 500 Index(.SPX.US$ that helped propel Cathie Wood to Wall Street superstardom.
As rising yields hammer expensive-looking growth companies with shaky profit outlooks, the exchange-traded fund beloved by day traders, $ARK Innovation ETF(ARKK.US$, has already plunged 19.92% this year -- down 52% from February's peak.
Last week Wood, the founder of ARK Investment Management, saw ARKK's returns since 2020 fall below the Nasdaq 100 Index, as the new year tech wreck disproportionately lashed her favored stocks. According to Bloomberg data, assets managed by ARKK, which launched in 2014, now stand at $12.8 billion versus the $28 billion peak last February.
Given the asset manager's preference for high growth, speculative stocks, every single U.S.-listed ARK fund is now down in 2022.
On the other hand, anti-ARK ETF $Tuttle Capital Short Innovation ETF(SARK.US$ went up over 20% so far in 2022, which had a 50% return since its debuts in November.
Amid the turmoil, Wood's mantra is that ARK invests with a minimum five-year time horizon, and that volatility is to be expected in the industry-disrupting and cutting-edge stocks it targets.
On Wednesday morning, she tweeted about the "enormous" arbitrage opportunity in the disparity of valuations between private and public markets for innovative companies.
Are you a fan of Cathie Wood? Would you invest in ARK funds or SARK this year？
Source: Bloomberg, Twitter
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VIKING808 : I mean it's not like an inverse ARK invest ETF shorts everything Kathy Woods touches came out and became hugely popular in the last couple months or anything like that right?
oh wait...
VIKING808 : I mean it's not like an inverse ARK invest ETF that shorts everything Kathy Woods touches came out and became hugely popular in the last couple months or anything like that right?
oh wait...
TraderLol : ok
Mr Trecherous : Never trust a chick named Cathie
allen kidd : I've lost money listening to her last year, that's when I stopped following her.
Cathie isn't a bad name tho Mr. T
ETF HubOP allen kidd: if you lost faith in her, maybe you can take a look at $Tuttle Capital Short Innovation ETF (SARK.US)$