ARK Innovation ETF ARKK hit new five-year lows on Tuesday, led by declines in the top holdings of Ark's flagship fund. As ARKK continued its two-year slide, it appeared some investors have finally had enough.
What Happened: Ark's flagship fund was seeing net outflows in December after having net inflows the month before, a trend that held for the last eight months. It seems now the trend is starting to take a turn.
In May, Ark's Innovation fund reported net inflows of $657.84 million. The next month, the fund saw net outflows to the tune of $107.29 million.
In July, Ark Innovation had net inflows of $384.92 million, followed by net outflows of $834.75 million in August. In September, the fund again saw net inflows of around $400 million, but net outflows took a sharp drop in October.
Ark Innovation reported net inflows of just $13.11 million in November, and just 20 days into December, the fund has already seen net outflows of nearly $40 million.
Ark Invest founder and CEO Cathie Wood continued to reaffirm her expectations for significant price appreciation in the innovation space over a five-year period, but it looked like a lot of her supporters aren't willing to stick around after seeing the fund's top holdings significantly underperform in 2022.
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ARKK Top Holdings: Ark's top five innovation holdings represent close to a 40% weighting in the flagship fund. As these continue to trend lower, Wood continued to add to positions.
Here's a look at how Wood's top picks have fared in 2022.
- Zoom Video Communications Inc ZM: -62.5% YTD
- Exact Sciences Corp EXAS: -33.51% YTD
- Tesla Inc TSLA: -59.52% YTD
- Roku Inc ROKU: -81.1% YTD
- Block Inc SQ: -61.75% YTD
What About SARK? On the other hand, the AXS Short Innovation Daily ETF SARK was up close to 80% since the start of the year. SARK is an actively managed fund that aims to achieve -1 times the return of the ARK Innovation ETF for a single day.
ARKK Price Action: ARKK has a 52-week high of $99.88. It hit new 52-week lows on Tuesday before bouncing back.
ARKK was down 0.25% at $32.14 Tuesday afternoon, according to Benzinga Pro.
Photo: Lee Rosario from Pixabay
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