With every new year comes a clean slate. For Cathie Woods Ark Invest, that doesnt seem to be the case.<\/p>\n
The firms beaten-down Ark Innovation Fund (ARKK) has hit a new low in 2022 already. After shedding 7% in Wednesdays sell-off, the fund is down 9% this week so far and 45% from its peak in February 2021, with the decline marking its worst drawdown since inception in 2014.<\/p>\n
A rout in growth-oriented stocks that has battered ARKK was made worse on Wednesday as investors mulled the likelihood of sooner-than-expected rate hikes after minutes from the Federal Open Market Committee's (FOMC) December meeting reflected concerns from policymakers about worsening inflation, signaling more imminent intervention by the central bank.<\/p>\n
Losses in Arks beleaguered exchange-traded fund come amid the renewed pressures in technology stocks that sent the Nasdaq tumbling 3.1% and the S&P 500 down 1.9% in Wednesdays trading session. The benchmark 10-year Treasury yield topped 1.7% to yield its highest since April, deepening the downturn in high-growth stocks.<\/p>\n
Bespoke Investment Group pointed out that ARKKs 2022 declines place it only 6.66 percentage points above the S&P 500 since the ETFs pre-COVID high and 17.9 percentage points below the Nasdaq 100 (QQQ) as of Wednesday. At its February 2021 peak, the fund was significantly outperforming both benchmarks beating SPY by 143% since its pre-COVID peak and the more tech-heavy QQQ by 117%.<\/p>\n
Wood, whose prescient stock picks made her a star on Wall Street after ARKK returned 150% in 2020, promised investors just one month ago that her strategy could deliver a 40% compound annual rate of return during the next five years a projection she later updated to a lower but still ambitious 30%-40% after some rebuke.<\/p>\n
All 20 of ARKK's top holdings were in the red at Wednesday's close. Losses were led by Roku (ROKU), down 11.72%; UiPath Inc. (PATH) down 10.33%; and Intellia Therapeutics (NTLA), down 8.97%. Of the 20 holdings, all except Tesla (TSLA) are down 20% or more from recent highs.<\/p>\n
Story continues<\/p>\n
All 20 of Ark Innovation's top holdings except Tesla are down 20% or more from recent highs.<\/p>\n<\/p>\n
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc<\/p>\n
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Cathie Woods flagship Ark ETF off to a rough start in 2022 down 45% from its peak - Yahoo Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" With every new year comes a clean slate. For Cathie Woods Ark Invest, that doesnt seem to be the case. The firms beaten-down Ark Innovation Fund (ARKK) has hit a new low in 2022 already. Continue reading