Safe blue-chip equities as well as a risk-free environment for the oil and gas sector, in which ARK has little exposure, weighed on Ark Invest’s performance. Meanwhile, raised interest rates and the prospect of the Federal Reserve beginning its first tight cycle since late 2018 haven’t helped the outlook for high-growth equities with less-than-gain gains.
For some time, investors have believed in Cathy Wood, who stands by her long-term investment theory that deflationary pressures, in part, will help her portfolio outperform.
Since the SARK ETF’s inception, the ARKK ETF’s assets under management have practically halved, which is entirely due to the fund’s price action. Underlying fund flows, which are driven by investors’ buy and sell decisions, indicate that they are based primarily on Wood’s long-term investment philosophy.
The ARKK ETF has seen a total fund inflow of USD 876 million so far this year and USD 619 million since the launch of the SAARC ETF. Meanwhile, since its launch, the SARK ETF has received US$250 million in fund inflows, bringing its total AUM to US$338 million as of Friday.
However, if Tesla begins to rollover the company’s largest stake, investor confidence in Wood’s investment approach could be tested.
