Will Ark ETFs recover?
ARK Innovation's (ARKK) concept isn't backed up by credible ETF research, and that's why it has capitulated under changing market circ*mstances. The fund's information ratio suggests that it's not managed efficiently.
That underperformance continued into 2022 with the ARKK ETF down more than 56% through May 9 compared to the Nasdaq's 25.7% fall through the same period. With the ARKK ETF about 70% off its 52-week high, the ETF is not a buy right now.
The ETF shorting Cathie Wood's ARK Innovation Fund (ARKK) has been a big winner in 2022. The Tuttle Capital Short Innovation ETF (SARK) has soared more than 75% year-to-date while the ARKK ETF has fallen more than 55% in the same time period.
Tesla, though, isn't the largest holding in ARK Innovation ETF anymore. That distinction now goes to video streaming streaming service provider Roku (ticker: ROKU). It accounts for about 8.4% of ARK Innovation's holdings. Tesla (TSLA) accounts for about 8.2% of the fund.
ARKK is a Large Cap Blend ETF and while Large Cap Blend ranks first in our most recent investment style ratings, ARKK earns our Very Dangerous rating for its poor selection of large cap stocks and its high costs.
ARKK in +12.76% Uptrend, advancing for three consecutive days on July 05, 2022. Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth.
In general, the holdings of ARKK appear to be of the former, as Wood appears attracted to stocks powered by secular growth tailwinds. As a result, given the right valuation, ARKK appears to be a good long-term investment.
Consolidations are often followed by break-outs, so ARKK's upside looks promising. Buying ARKK while its share price has taken a hit offers significant upside potential for long-term holders. However, the volatility of the underlying holdings means significant turbulence could be experience in the short to medium term.
ARK Innovation ETF (NYSEARCA:ARKK) is becoming undervalued, secondary to the classic overcorrection phenomenon that occurs to an equity based security, after a period of overvaluation.
Ark Innovation ETF (NYSEARCA:ARKK) has fallen hard since the beginning of 2022 because its investors have continued to come to their senses. Unfortunately, it is too late for many of them.
What is the average rate of return for ARKK?
| Returns | Volatility (vs. Market Benchmark) | |
| Average | NAV Return | Standard Deviation |
|---|---|---|
| 1 Year | -69.18 | 33.36% |
| 3 Year | -4.91 | 42.64% |
| 5 Year | +8.36 | 37.84% |
there's about a $2.6 billion loss.” And that's true even though the fund price itself is up 270% since 2014, and is about 50% from two years ago. That's because investors put comparatively little into the fund early on, before it rose, but tons near the 2020 peak, just before the crash.
ARK Innovation Exchange-Traded Fund (ETF), or AARK, bought 360,855 Coinbase shares, 0.252% of the fund's investments. ARK Next Generation Internet ETF, or ARKW, bought 62,602 shares, making Coinbase 0.2397% of the fund's investment.
The largest ETF holder of TSLA is the SPDR S&P 500 ETF Trust (SPY), with approximately 8.88M shares. Investors may also find of interest that the ETF with the largest allocation to TSLA stock is Consumer Discretionary Select Sector SPDR Fund (XLY), with a portfolio weight of 20.71%.
It's also managed by the famous Catherine Wood, so is ARKG a good ETF to buy? The fund has a heavy exposure to biotechnology – a good spot during a pandemic. In fact, it started 2021 with over 96.6 percent of its holdings in healthcare. It also holds minimal positions in technology and consumer defensive stocks.
ARK missed a historic bash: Since the start of 2021, it has surrendered 33% versus a rise of 25% for the S&P 500 and 15% for the Nasdaq. Most of ARK's largest holdings have endured steep declines since the start of 2021.
Investors in Cathie Wood's ARK Innovation ETF (ARKK) - Get ARK Innovation ETF Report can't catch a break in 2022. The fund is now down 49% from the all-time high reached in February 2021. Any attempt to buy the dip over the past year has, so far, proven to be a failure, as the ETF made fresh 52-week lows on January 13.
Ark Innovation Investment Opportunity
44 of all equities and portfolios are less risky than Ark Innovation. Compared to the overall equity markets, volatility of historical daily returns of Ark Innovation ETF is lower than 44 () of all global equities and portfolios over the last 90 days.
Renowned investor Cathie Wood's flagship Ark Innovation ETF (ARKK) - Get ARK Innovation ETF Report is on the rebound. It has bounced back 24% from its May 12 intraday low. The fund remains off 54% year to date and off 73% from its February 2021 high.
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Zacks Premium Research for ARKK.
| Zacks Rank | Definition |
|---|---|
| 1 | Strong Buy |
| 2 | Buy |
| 3 | Hold |
| 4 | Sell |
How much is Cathie Wood worth?
Her estimated net worth of $140 million is sharply down from $400 million last year and falls well short of the $215 million cutoff to make this year's top 100. Forbes estimates that her majority ownership stake in her firm is worth about $125 million.
NEW YORK, May 5 (Reuters) - Star stock picker Cathie Wood's ARK Innovation fund dropped nearly 9% on Thursday as concerns about rising inflation and slowing growth sent the benchmark S&P 500 down nearly 3.6%. The declines left ARK Innovation (ARKK.
Cathie Wood's Ark Investment Management on Monday purchased 158,187 shares of General Motors , marking the Tesla bull's first stake in a Detroit automaker. The purchase – valued at more than $6 million – was through the ARK Autonomous Tech.
The fund is an actively-managed exchange-traded fund ("ETF") that will invest under normal circ*mstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the fund's investment theme of disruptive innovation.
- Vanguard S&P 500 ETF (VOO)
- Vanguard FTSE Developed Markets ETF (VEA)
- Vanguard Information Technology ETF (VGT)
- Vanguard Dividend Appreciation ETF (VIG)
- iShares MBS ETF (MBB)
- Vanguard Short-Term Bond ETF (BSV)
- Vanguard Total Bond Market ETF (BND)
- iShares National Muni Bond ETF (MUB)
Currently, ARK's ETFs do not use any leverage.
$5 Billion AUM
ARK crosses $5 billion in Assets Under Management (AUM).
The ARK Innovation Fund (NYSEARCA:ARKK) is one of the leading growth funds. It has been one of the hardest-hit ETFs by the consistent sell-off of growth stocks over the past month has jolted investors.
ARK ETF Overview
With 8 ETFs traded on the U.S. markets, ARK ETFs have total assets under management of $16.68B.
It isn't a big surprise that Wood is buying the Tesla dip. She has a 2026 price target of $4,600, though the stock fell from its top spot in the flagship ARK Innovation ETF (ARKK) last month after the spring selloffs.
Should we exit the stock market?
When you find a stock that has better fundamentals than the one you are holding on to now, it is a good time to exit the stock. This also means that the company is doing better and coming up with better products or services that can grab better opportunities.
The latest data show almost $600 million poured into ARKK in the three days through Wednesday. ARKK's top performing holdings. “Unlike index based ETFs, active ones often hold at least a small portion of assets in cash as they manage flows,” said Todd Rosenbluth, head of research for ETF Trends.
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Key characteristics.
| ARKK | ARKQ | |
|---|---|---|
| 5Y Return (Ann) | 9.60% | 12.53% |
| 10Y Return (Ann) | 11.65% | 13.56% |
| Sharpe Ratio | -1.07 | -1.06 |
| Daily Std Dev | 59.12% | 36.17% |
ARK Innovation ETF (ARKK)
ARKK has a dividend yield of 0.57% and paid $0.26 per share in the past year. The dividend is paid once per year and the last ex-dividend date was Dec 29, 2021.
| Company | Symbol | Total Net Assets |
|---|---|---|
| UiPath Inc. | PATH | 4.75% |
| Teladoc Health Inc. | TDOC | 4.57% |
| Coinbase Global Inc. | COIN | 4.30% |
| Twilio Inc. Cl A | TWLO | 4.22% |
Buffett is undoubtedly one of the greatest, if not the greatest, investor of all time. But Cathie Wood is arguably a better stock picker than Buffett. Cathie Wood deserves a lot of credit for picking Tesla (TSLA 5.79%) early and sticking with it even as sentiment reached peak bearishness right around May 2019.
Ark Invest owns 8.3 million shares of Grayscale Bitcoin Trust (GBTC), with Bitcoin and Ether (ETH) making up a good percentage in Ark Invest's portfolio.
Cathie Wood's Ark Invest buys the dip on Coinbase
The technology-focused firm purchased 546,579 shares of crypto exchange Coinbase (COIN) worth about $30 million on Wednesday, a daily trade report published by the firm showed.
The scammers impersonated Cathie Wood, founder of Ark Invest, and created a scam website that looks similar in style to the original ARK Invest website, as shown below. The scam promises individuals a chance to win 5,000 BTC or 50,000 ETH, according to the scam website.
- #1. SPDR® Portfolio Corporate Bond ETF SPBO.
- #2. Schwab 5-10 Year Corp Bd ETF SCHI.
- #3. Goldman Sachs Acss Invmt Grd Corp Bd ETF GIGB.
Does Apple have an ETF?
Apple Inc. is a company in the U.S. stock market and it is a holding in 376 U.S.-traded ETFs. AAPL has around 1.2B shares in the U.S. ETF market. The largest ETF holder of AAPL is the SPDR S&P 500 ETF Trust (SPY), with approximately 164.47M shares.
Vanguard Total Stock Market Index Fund ETF (VTI)
Top holdings: Apple, Microsoft, Amazon, Facebook, Tesla, Alphabet (Google), Johnson & Johnson, Berkshire Hathaway, and JP Morgan Chase.
The ARK Genomic Revolution ETF holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the ETF giving a positive forecast for the stock.
| ETF | Expense Ratio |
|---|---|
| ARK Genomic Revolution ETF (NYSEMKT:ARKG) | 0.75% |
| Global X Genomics & Biotechnology ETF (NASDAQ:GNOM) | 0.5% |
| Invesco Dynamic Biotechnology & Genome ETF (NYSEMKT:PBE) | 0.59% |
| iShares Genomics Immunology and Healthcare ETF (NYSEMKT:IDNA) | 0.47% |
ARKG is currently trading at $66.38 a share, lower than its level a year ago, before a steep rally that crested early in 2021. The genomics fund has also seen the largest outflows among Ark's ETFs this year.
It has bounced back 24% from its May 12 intraday low. The fund remains off 54% year to date and off 73% from its February 2021 high. In the past few weeks Wood's disruptive technology stocks have rebounded in sync with other stocks.
Ark Innovation (ARKK), Wood's main ETF, is poised to end 2021 down by nearly 25%, even as the S&P 500 is up by about the same amount.
Ark Innovation ETF (NYSEARCA:ARKK) has fallen hard since the beginning of 2022 because its investors have continued to come to their senses. Unfortunately, it is too late for many of them.
Investors in Cathie Wood's ARK Innovation ETF (ARKK) - Get ARK Innovation ETF Report can't catch a break in 2022. The fund is now down 49% from the all-time high reached in February 2021. Any attempt to buy the dip over the past year has, so far, proven to be a failure, as the ETF made fresh 52-week lows on January 13.
In general, the holdings of ARKK appear to be of the former, as Wood appears attracted to stocks powered by secular growth tailwinds. As a result, given the right valuation, ARKK appears to be a good long-term investment.
What did Cathie Woods buy today?
Cathie Wood's Ark Investment Management on Monday purchased 158,187 shares of General Motors , marking the Tesla bull's first stake in a Detroit automaker. The purchase – valued at more than $6 million – was through the ARK Autonomous Tech.
- Vanguard S&P 500 ETF (VOO)
- Vanguard FTSE Developed Markets ETF (VEA)
- Vanguard Information Technology ETF (VGT)
- Vanguard Dividend Appreciation ETF (VIG)
- iShares MBS ETF (MBB)
- Vanguard Short-Term Bond ETF (BSV)
- Vanguard Total Bond Market ETF (BND)
- iShares National Muni Bond ETF (MUB)
For example, in the February 28, 2020 SA article ARKK: More Trouble Ahead, the author states that: Despite significant corrections this year, all of ARK Innovation ETF's top ten investment holdings are likely still overvalued, as they all trade at inflated sales multiples.
NEW YORK, May 5 (Reuters) - Star stock picker Cathie Wood's ARK Innovation fund dropped nearly 9% on Thursday as concerns about rising inflation and slowing growth sent the benchmark S&P 500 down nearly 3.6%. The declines left ARK Innovation (ARKK.
There are alternatives to ARKK. One is Vanguard Information Technology ETF (NYSEARCA:VGT). For all of 2021, the ETF was up 29.5%. Comparing these ETFs over a 3-year period, VGT grew 175% while ARKK, with significant volatility, grew 154%, as show in Chart 1.
It isn't a big surprise that Wood is buying the Tesla dip. She has a 2026 price target of $4,600, though the stock fell from its top spot in the flagship ARK Innovation ETF (ARKK) last month after the spring selloffs.
When you find a stock that has better fundamentals than the one you are holding on to now, it is a good time to exit the stock. This also means that the company is doing better and coming up with better products or services that can grab better opportunities.
The latest data show almost $600 million poured into ARKK in the three days through Wednesday. ARKK's top performing holdings. “Unlike index based ETFs, active ones often hold at least a small portion of assets in cash as they manage flows,” said Todd Rosenbluth, head of research for ETF Trends.
