Cathie Wood’s flagship fund on Friday closed at its lowest level in five years, after suffering a 78% plunge from last year’s highs.
The ARK Innovation ETF (ticker ARKK) dropped 5.7%, finishing the day at $33.99 per share. The fund fell roughly 9.4% over the five-day stretch, its fifth straight weekly decline.
“Nothing has changed in the larger macro backdrop -- a strong dollar is pressuring risk assets, inflation keeps surprising on the upside, rates are sticky and the Fed has to keep tightening,” said Todd Sohn, ETF strategist at Strategas Securities. “All of that is a bad combo for high-growth stocks.”
The year hasn’t been kind to the $6.7 billion ETF, as top holdings like Tesla Inc. and Zoom Video Communications Inc. were pummeled. Growth-oriented assets, like tech stocks or retail-trading favorite Tesla, have tanked as the Federal Reserve raises rates to knock down scorching levels of inflation.
