Cathie Wood’s flagship fund is likely to plunge below its lowest level during the pandemic crash, according to a report by Bloomberg on Thursday.
A day after reporting its third-worst performance ever, the ARK Innovation ETF was 2.8% lower in early trading in New York. The ETF fund is now nearly 3.4% away from its close in March 2020 collapse.
Wood’s core ETF is the standard-bearer for a bad selloff in the expensive tech shares across Wall Street as inflation rises and policymakers rush to hike rates aggressively.
The pressure hurts bets on profitless firms that provide the promise of earnings in future years, exposures mainly favored by Wood and her analysts.
The crash over the last five trading days is a record for the fund and takes this year’s plunge to a whopping 61%.
Wood maintains that her investment has a five-year investment horizon, and this type of turmoil makes her top picks cheaper. ARKK up +5.25%, COIN down -0.60%