Cathie Wood’s flagship exchange-traded fund is down almost 40% this year. Some investors, though, are piling in -- wary of missing out on potential gains should the tide turn in its favour.
The US$11 billion ARK Innovation ETF (ticker ARKK) is on track to see its fifth straight week of inflows totalling roughly US$1.3 billion, according to data compiled by Bloomberg. Traders have added money to the fund for three consecutive months now, the longest such streak in a year, with a net intake of US$965 million for 2022 so far.
That’s happening as Wood’s growth-centric ETF gets hit on multiple fronts. The Federal Reserve is commencing a rate-hiking cycle, while the war in Ukraine pushes up commodity prices, leading to concerns that economic growth and corporate profits could slow.