Cathie Wood's ARK Innovation ETF Just Hit a 5-Year Low: Will It Rebound?
Cathie Wood has become one of the most influential professional investors in the world over the past few years. The Ark Innovation ETF (NYSEMKT: ARKK) -- just one of the exchange-traded funds she created at her firm, Ark Invest -- gained prominence in 2020, posting outstanding returns and bringing innovative companies to the forefront of investors' minds.
Yet many of those innovation stocks topped out at various points during 2021, and in this year's bear market, many of the ones that Wood picked for Ark Innovation's portfolio have fallen particularly sharply. As a result, the ETF earlier this week touched its lowest level in five years, and that has investors taking a new, critical look at Wood and the prospects for the fund to rebound in 2023.
Ark Innovation is down 65% so far in 2022, a result that can be blamed on an unusual confluence of poor performances across a wide swath of its holdings. Among the ETF's top 25 positions as reported by Morningstar, fully 20 had lost half or more of their value during 2022 as of Dec. 21. Six were down by more than 80%.
Source Fool.com