Exchange-traded fund (ETF) investors generally see ETFs as safer investments over individual stocks because of their exposure to numerous stocks, sometimes spanning multiple sectors.
The Cathie Wood-led ARK portfolio made its mark in 2020. Her flagship fund, Ark Innovation ETF (NYSE: ARKK), bet on “disruptive innovation,” which beat massive conglomerates like BlackRock Inc (NYSE: NYSE:BLK) and others, delivering returns of more than 150%.
Led mostly by Telsa Inc (NASDAQ: TSLA), which boomed more than 696% in 2020 — Wood built an almost cult-like following on Reddit’s r/WallStreetBets for her stock-picking skills.
2022, however, has not been so kind to Wood and her various ARK ETFs, take a look.
According to Y-charts, the flagship ARKK fund is down 48.24% this year as compared to the S&P 500 which has crept out of the bear market territory, shedding 15.42% in the same time frame.
In an early-June interview with Bloomberg, Wood blamed inflation and high interest rates for ARKK’s sour performance, saying, “Innovation solves problems, we had a lot of problems during the coronavirus — we were rewarded accordingly. Since then, we’re down 75% – why? Inflation and interest rates.”
Steep declines of pandemic favorites like Tesla, and Zoom Video Communications Inc. (NASDAQ: ZM) which are down 32% and 42% in 2022, — two of ARKK’s largest holdings — are partly to blame for the losses in her portfolio this year.
There are 34 individual stocks in the ARK Innovation ETF, let’s take a look at how much money would be allocated to each stock if you invested $1,000 in the ETF right now.
| TSLA - $86.60 | SQ - $46.40 | RBLX - $25.10 | TWST - $19.30 | PACB - $6.80 |
| ZM - $85.50 | BEAM - $46.10 | DKNG - $23.70 | VCYT - $13.70 | CERS - $6.80 |
| ROKU - $80.30 | COIN - $44.90 | FATE - $23.60 | TXG - $12.00 | MTLS - $6.20 |
| CRSP - $50.40 | NTLA - $44.90 | PD - $23.10 | TSP - $ 10.09 | NVTA - $4.40 |
| TDOC - $50.40 | TWLO - $36.10 | SGFY - $23.30 | SPOT - $8.90 | BLI - $2.00 |
| EXAS - $47.50 | U - $34.20 | DNA - $21.0 | NVDA - $8.70 | CGEN - $1.30 |
| PATH - $46.80 | SHOP - $31.10 | HOOD (NASDAQ:HOOD) - $20.50 | TWOU - $7.40 | $14.46B AUM |
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