Cathie Wood’s ARK Innovation ETF (NYSEARCA:ARKK) has been left out of the rally that growth stocks have generally seen in early 2024. Wood’s flagship ARKK fund is down on the year by 10.4% and has watched investors retract $506.84M from the ETF to start out the year.
For a frame of reference, the Info Tech sector has been among the strongest performing S&P segments and the growth-oriented Nasdaq Composite (COMP.IND) is outshining all other major averages year-to-date.
The popular Invesco QQQ Trust ETF (NASDAQ:QQQ) is +4.8% year-to-date and has accumulated $5.94B to start the year. The Vanguard Growth Index Fund (NYSEARCA:VUG) is another growth focused fund that has advanced 4.4% in 2024 and has been rewarded with $487.7M of net new money.
ARKK’s top five holdings have contributed to the ETF’s decline in early 2024, as all five names have moved lower on the year. Moreover, the funds top five holdings also together represent 37.91% of ARKK’s portfolio which hinders room for other names to shine through. See below ARKK’s top five holdings and each of their 2024 performances.
- Coinbase Global (COIN): 8.75% weighting and -24.8% YTD.
- Roku (ROKU): 7.84% weighting and -1.8% YTD.
- Tesla (NASDAQ:TSLA): 7.62% weighting and -23.2% YTD.
- Zoom Video Communication (ZM): 7.13% weighting and -5.8% YTD.
- UiPath (PATH): 6.57% weighting and -4.5% YTD.
Also struggling on the 2024 trading year are Cathie Wood’s five other actively managed exchange traded funds. All five of her other funds trade in negative territory to start out the year and have all experienced net outflows as well. See the returns that the other five funds have provided in 2024.
- ARK Next Generation Internet ETF (ARKW) -5.7% YTD.
- ARK Autonomous Technology & Robotics ETF (ARKQ) -7.2% YTD.
- ARK Genomic Revolution ETF (ARKG) -10.2% YTD.
- ARK Fintech Innovation ETF (ARKF) -4.9% YTD.
- ARK Space Exploration (ARKX) -5.9% YTD.
