Stock picker Cathie Wood’s top five ETFs fell more than 4% on Friday.
Photograph:
Alex Flynn / Bloomberg News
Exchange-traded funds from ARK Investment Management LLC are firmly in a bear market following another round of sharp declines on Friday.
The top five ETFs of New York’s top asset management firm, Cathie Wood, fell between 4% and 7% in recent trades, as technology stocks and other fast-growing stocks continued to sell. These declines pushed ARK funds down more than 20% from the most recent highs, reaching the traditional limit used to determine when bonds and indices entered a bear market.
ARK ETFs have plummeted in the broader stock market. The S&P 500, which ARK uses as a reference for its own funds, is about 5% below its February 12 high.
ARK’s main innovation fund was the hardest hit. The $ 23 billion fund was 31% below its previous high, with about half of those declines occurring just this week. The falls to the other ARK funds were not far away. This is probably due to the fact that several shares in Wood’s funds are largely exposed to the growth of trade, which the market has activated in the face of an increasingly steep yield curve.
Some of ARK’s funds have heavy positions in companies like electric car maker Tesla Inc.,
Roku streaming service Inc.
and digital payments company Square Inc. All three stocks are down at least 28% from the most recent highs.
Some of the recent losses appeared to dislodge more investors from ARK funds. After two days of consecutive inflows, investors withdrew $ 150 million from ARK’s innovation fund and $ 112 million from its genomic pool on Thursday.
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