Cathie Wood’s primary ETF joined the broader tech rally, delivering a reprieve from a month of selling.
On Tuesday, the $20.2 billion ARK Innovation ETF (ARKK) joined a spectacular rebound in beaten-down tech shares, rising 10% for its biggest advance since it started in 2014. Tesla Inc., the ETF’s biggest holding, almost 20% for its steepest climb in a year, while other large stakes like Square Inc. And Teladoc Health Inc. Climbed 12% and 11%, respectively.
ARKK has been in a tailspin since hitting a record last month, plunging 30% from the Feb. 12 high before Tuesday’s rebound. It’s still down almost 2% so far in 2021 after rallying 149% last year.
“It’s an impressive bounce, but we’ll see just how long it lasts,” said James Pillow, managing director at Moors & Cabot Inc. “It’s hard to get excited about it when it — and its largest holdings — are in a short-term downtrend. It may take some work to regain its momentum.”
Wood has risen to prominence by backing technology companies she believes will disrupt the markets in which they operate, from electric vehicle makers to fintech firms and genomics researchers.
Despite a trickle of outflows recently, her family of funds has attracted more than $15 billion so far this year.