Cathie Wood Storms Back as ARKK, Space Fund Lure $1 Billion By Bloomberg

<iframe src=”//rcm-na.amazon-adsystem.com/e/cm?o=1&p=22&l=ur1&category=homegarden&banner=02NMTC702K4D0VHE1SR2&f=ifr&linkID=17e0b4ac3a719000706e772761d8ae0e&t=forexz-20&tracking_id=forexz-20″ width=”250″ height=”250″ scrolling=”no” border=”0″ marginwidth=”0″ style=”border:none;” frameborder=”0″></iframe>

© Reuters Cathie Wood Storms Back as ARKK, Space Fund Lure $1 Billion

(Bloomberg) — A pair of Cathie Wood exchange-traded funds added around $1 billion in a single day this week in an emphatic display of investor loyalty toward the famed Ark Investment Management founder.

The flagship Ark Innovation ETF (NYSE:) took in a record $717 million on Tuesday, while the Ark Space Exploration and Innovation fund (NYSE:) absorbed $281 million on its debut, according to data compiled by Bloomberg.

Alongside bumper trading volumes on the day, it all adds up to one of the best-ever ETF launches for the fund, which tracks U.S. and global companies engaged in space exploration and innovation.

The launch was seen as a key test of Wood’s appeal after a volatile few months of flows and performance. After one of the strongest performances of 2020, ARKK has dropped 3.7% this year amid a rough patch for tech shares. Before a flood of cash this week, Ark’s main fund had posted five consecutive days of outflows, its longest streak on record.

“This is investors taking advantage to jump in after the drop from the top,” said Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence. “You can see some investors were shaken out because there were some days of outflows during this period but for the most part people held strong so the demand is still there.”

ARKK was up 2% in pre-market trading as of 11:40 a.m. in New York, while the space fund rose 1.8%.

Ark’s investing strategy and success in luring new cash has spurred big bets on small companies, raising concern the firm exerts an outsize influence over the shares its holds. Wood handed fresh ammunition to her critics last week in a filing that removed prospectus clauses limiting exposure and concentration risks in its ETFs.

That hasn’t taken any shine off the space fund, with Wood’s first new ETF in two years seeing $294 million worth of shares change hands on its first day.

The product’s top two holdings are Trimble Inc. (NASDAQ:) and another Ark vehicle, the 3D Printing ETF (NYSE:). Other large stakes include Kratos Defense & Security Solutions Inc. (NASDAQ:), L3Harris Technologies (NYSE:) and JD.com (NASDAQ:), an online retailer in China.

(Updates throughout with trading plus additional context on Ark and the new fund.)

©2021 Bloomberg L.P.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*