Cathie Wood’s flagship ETF returns with near-record inflow | Business and economic news

Pain for Cathie Wood, Cathie Wood’s flagship exchange-traded fund, proved fleeting as ETF ARK Innovation landed its second-largest fundraising on Friday, according to data compiled by Bloomberg.

Even the worst performance in almost a year does little to reduce demand for the Cathie Wood brand.

The ARK Innovation ETF (symbol ARKK), Wood’s Ark Investment Management’s main fund, landed its second-largest fundraising on Friday, according to data compiled by Bloomberg.

The injection of $ 464 million follows a four-day rout that caused the exchange-traded fund to fall more than 15%, showing investors’ willingness to buy the decline.

Frightened by rising bond yields, traders punished the more expensive parts of the stock market last week, including many of ARKK’s major holdings, such as electric car maker Tesla Inc. stocks rallied to all levels.

“The rebound in equities and in particular technology stocks was a delightful surprise for Ark Innovation ETF,” wrote Steen Jakobsen, Chief Investment Officer of Saxo Bank. Jakobsen warns, however, that “the Tesla-Bitcoin-Ark risk cluster could still induce equity volatility.”

Wood’s tough week at one point reduced ARKK’s assets, which returned 149% in 2020, by around $ 5 billion. While sizable, this remains a fraction of the company’s ETF assets under management, which soared to over $ 60 billion last month.

ETF ARK Genomic Revolution (ARKG) also saw an influx on Friday, adding $ 64 million. The ARK Next Generation Internet ETF (ARKW) had a small exit.

Despite Monday’s rebound, bearish bets continue to rise against ARKK. The percentage of stocks sold short in the fund hit a record high of almost 5%, according to data from IHS Markit.

The ETF was little changed on Tuesday at the start of trading in New York. It has increased by 9.8% this year.

– With the help of Cecile Gutscher.

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