The hits keep on coming for Cathie Wood’s ARK Innovation exchange-traded fund. The once-highflying ETF is on pace for its longest string of losses, eight in a row, since a similar skid ended Dec. 24, 2018.
The decline in ARK Innovation
is shaping up to be the worst start to a month for the ETF since it was created back in 2014, according to Dow Jones Market Data.
The fund is down by nearly 12% this week and is also setting the stage for its third straight weekly slump as one of the hottest investments on Wall Street unravels at a spectacular rate ahead of Wood’s appearance on CNBC’s “Closing Bell” on Friday at 3 p.m. Eastern Time.
Barron’s, however, writes that the pain for ARK could get worse before it gets better for the fund that delivered a 153% return in 2020. MarketWatch’s sister publication said that redemptions may be adding to the selling pressure in some of the ETF’s small- and midcap holdings.
MarketWatch’s William Watts also writes that a downturn in ARK’s uptrend may bode ill for the broader market, which has largely been supported by some of the biggest names in tech that have mostly thrived amid the pandemic’s stay-at-home protocols.
Despite the selling, ARK Innovation still boasts a 94% gain over the past 12 months. By comparison, the Dow Jones Industrial Average
is up 46% over the past year, the S&P 500 index
has gained 47% and the tech-heavy Nasdaq Composite Index
boasts a 53% return over the same period.