With the growing risk aversion in the market, high-growth technology stocks have become one of the first varieties abandoned by investors.
ARK Innovation ETF (Code ARKK), owned by well-known investor wooden Sister Cathie Wood, recorded its largest quarterly outflow since its inception, with outflows of about $1.97 billion in the three months to the end of September.
There is an one-day lag in ARKK's inflow and outflow data, which means that flows on the last trading day of last month have not yet been recorded. However, the fund's second consecutive quarter of outflows appears to be a foregone conclusion, and as long as inflows fall below $125 million on the last day, September is on track to be the worst since the product was launched in 2014.
Wood's main fund and her company, Ark Investment Management, have attracted billions of dollars in inflows over the past year because of the excellent performance of its tech-focused funds in 2020. But since then, as high valuations and accelerating inflation have raised concerns, the momentum of Wood and Ark has cooled.