Cathie Wood’s ARKK falls to a 2-year trading low as Tesla drops 10%
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Cathie Woodâs flagship ARK Innovation ETF (NYSEARCA:ARKK) fell to a fresh 2-year trading low on Tuesday, weighed down by a 10% slide in Tesla (TSLA), the fund's biggest holding. The slide came amid a general tech slide, with the Nasdaq Composite (COMP.IND) plummeting 3.1% on the day.
Wood, who has been a longtime bull of Elon Muskâs TSLA, saw her actively managed ETF down 6.1% at the midpoint of Tuesday's trading. TSLA plays a large role in ARKKâs daily price swings as it represents the fund's number one holding, with a weighting of 9.64%.
ARKK touched $50.97 a share on Tuesday, its lowest level since Apr. 21, 2020. Looking longer term, ARKK has fallen -47.1% so far in 2022. The ETF, which has tumbled for six straight months, is also off 67.7% from its all-time high of $159.70, which it experienced back in Feb. of 2021.
Meanwhile, as ARKK continues to fall, the Tuttle Capital Short Innovation ETF (NASDAQ:SARK) has thrived. SARK, which trades inversely to ARKK, is +6% on Tuesday and is +93.7% since its inception back on Nov. 9, 2011.
For investors who are interested in innovation and disruptive technologies but are unsure about Cathie Woodâs ARKK, a cheaper, more diverse fund exists that has outperformed ARKK as well.