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: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 – $20.50 |
TWOU – $7.40 |
$14.46B AUM |
Photo: Created with an image from The Focal Project on flickr
