Cathie Woods’s supporters are investing back into her flagship ARKK innovation ETF that is rebounding from huge losses, according to a report by Bloomberg on Thursday.
The ARK Innovation ETF posted inflows of $366.7 million, the biggest cash inflow in the year. The fund rose 11% this week, double the rally in the tech-heavy Nasdaq 100 and almost triple the increase of the benchmark S&P 500.
Investors have streamed in $447.4 million into the growth-stock fund this week, extending three consecutive weeks of inflows.
The massive inflows come after the fund’s worst month on record in April, when it plunged nearly 29%. The fund has sunk nearly 70% from its record-high in February 2021 after top holdings like Zoom Video Communications Inc. and Teladoc Health Inc fell from their pandemic highs.
Athanasios Psarofagis, an ETF analyst with Bloomberg Intelligence, stated that the move feels like buying the dip, further noting that the sentiment has been bearish on ARKK and equities. ARKK down -7.10%, ZM down -6.18%, TDOC down -9.45%