1 Underperforming ETF Every Investor Will Want To Avoid Right Now

ARK Innovation ETF (ARKK) is the flagship actively managed fund from ARK Invest, an advisory firm led by renowned investor Catherine Wood. This ETF seeks long-term capital growth by investing in companies that exhibit disruptive innovation. The companies within the fund cover areas including automation, artificial intelligence, robotics & energy storage, and fintech innovation.

ARKK has declined significantly in 2022 amid a broad market sell-off that majorly hit high-growth tech stocks, vulnerable to rising interest rates and slowing economic growth.

As the stocks in ARKK’s portfolio continued their downtrend, investors holding ARKK lost significantly. A shift in investor sentiment is evident from the fund’s outflow. According to data compiled by Bloomberg, the fund saw an $803 million outflow in August, the largest monthly outflow since last September.

ARKK has lost 18.4% over the past month and 64% over the past year to close the last trading session at $42.58. It is currently trading 66.2% below its 52-week high of $125.86, which it hit on November 4, 2022.

Here are the factors that could affect ARKK’s performance in the near term:

Fund Stats

ARKK has $8.67 billion in assets under management. Its expense ratio of 0.75% is significantly higher than the industry average of 0.50%. Over the past three months, the fund witnessed a net outflow of $188.4 million. It has a beta of 1.62 and a NAV of $42.60 as of September 13, 2022.

Top Holdings


The fund has a total of 36 holdings. Its principal holdings include Tesla Inc (TSLA) with 9.66% weighting, followed by Zoom Video Communications, Inc (ZM) with a 7.70% weighting, and Roku, Inc. (ROKU) and Exact Sciences Corporation (EXAS) with 6.94%, 5.05% weightings, respectively.

Brutal Tech Sell-Off

Since the beginning of 2022, tech stocks have gotten crushed in a broader market sell-off, driven by multi-decade high inflation, subsequent rate hikes, and an economic slowdown. The massive tech selloff has caused Wood’s ARK Invest flagship fund, ARKK, which primarily invests in disruptive innovation companies, to…

Continue reading at STOCKNEWS.com