Cathie Wood’s ARKK Is a Year From Its Peak and Still Struggling
- Innovation ETF tumbled 53% in 12 months amid U.S. tech selloff
- Outlook uncertain as ARK flagship follows Nasdaq dot-com path
Cathie Wood
Photographer: Kyle Grillot/BloombergThis article is for subscribers only.
Cathie Wood’s flagship exchange-traded fund peaked on Feb. 16, 2021. One year and a 53% drop later, there could still be plenty of pain ahead for her beloved disruptive-tech chasing strategy.
The ARK Innovation ETF (ticker ARKK) has stabilized since a precipitous decline last month -- it’s roughly flat in February -- but the headwinds facing its speculative growth picks are only growing. Not only are yields rising as investors prepare for the Federal Reserve to raise interest rates -- bad news for unprofitable companies -- but the economic reopening is hammering many of the businesses which thrived in the pandemic.