Cathie Wood-led Ark Investment Management’s flagship innovation fund, which counts Tesla Inc (NASDAQ: TSLA), Zoom Video Communications Inc (NASDAQ: ZM) and Coinbase (NASDAQ:COIN) Global Inc (NASDAQ: COIN) as top constituents, has rallied 18% higher since bottoming out in May.
What Happened: Ark Innovation ETF (NYSE: ARKK) declined over 10% on May 11 after shares of Coinbase plummeted 26.4% after the cryptocurrency trading platform swung to a $430 million net loss in the first quarter and reported massive declines in active users.
Both ARKK and Coinbase have advanced higher since then — the innovation ETF has risen 16.8%, while the cryptocurrency exchange has soared 24%.
See Also: Tesla Bull Cathie Wood Says Bet Against 'Disruptive Innovation' Will Prove Ill-informed, Ill-timed
Coinbase is now ARKK's eighth-largest holding, slipping from No. 5 at the beginning of the year. Ark Invest, however, has been piling up shares in cryptocurrency-linked stocks such as Coinbase and Block Inc (NYSE: SQ) on the dip.
ARKK Still Down: The ETF, which also has Roku Inc (NASDAQ: ROKU) and UiPath Inc (NYSE: PATH) as key holdings, is down 55% this year.
In comparison, the S&P 500 is down 14.3% so far this year and has advanced 4.4% since May 11.
Tesla shares, which currently rank second in ARKK, have been volatile in the past month and have declined 12% since May 11.
Zoom, which currently sits on the top of the ETF ranking, has advanced 29% during the period, while Roku at the third spot advanced 11%, and Block at No. 4 gained 16.7%. The four stocks together have a 32% weight in the fund.
Wood has previously blamed the Federal Reserve for its rate hikes to tame inflation for the fund’s losses.
See Also: Why Cathie Wood Says Record-Breaking Inventories Could Lead To Weaker Prices
Photo courtesy: Ark Invest
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