ARK Innovation's performance under pressure as tech stocks swoon

By Reuters4 days ago

Reuters. FILE PHOTO: A specialist trader watches his chart while working on the floor of the New York Stock Exchange July 8, 2014. REUTERS/Brendan McDermid/File Photo/File Photo

By David Randall

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NEW YORK (Reuters) - A rotation out of growth and technology stocks and a recent slide in shares of Tesla (NASDAQ:TSLA) Inc are weighing on the performance of ARK Innovation, the flagship exchange-traded fund managed by star stock picker Cathie Wood that bested all other U.S. equity funds in 2020.

The $23.1 billion fund posted a gain of less than 1% last month, a showing nearly 3 percentage points behind the average fund in its category, according to Morningstar data. For the year to date, the fund is down 9%, a performance that puts it in the bottom 100th percentile in Morningstar's category of 543 mid-cap growth funds. The S&P 500 is up 10.9% over the same time.

Investors pulled $645.5 million out of the fund during the week that ended April 21, a 2.6% decline that was its largest weekly outflow in percentage terms since 2018 and only the fifth weekly loss overall since 2019, according to Refinitiv Lipper. The fund brought in $37 million the following week, the smallest weekly inflow in percentage terms since January 2020.

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