Ark Innovation Fund Suffers Steep Drop As Market Sell-Off Worsens

The shine has come off the Ark Innovation Exchange Traded Fund (NYSE:ARKK).

The high-flying ETF, which grew more than 100% in 2020, has now dropped 24% from its all-time high and turned negative for the current year.

Led by Wall Street star Cathie Wood, Ark’s flagship ETF, valued at $22.9 billion U.S., has erased all its price advance for the year.

The Ark Innovation fund has been caught up in a selloff of technology stocks as inflation fears grow and bond yields rise. The Ark ETF’s biggest holdings include Tesla, which dropped 4.8% on Thursday, as well as Square, which fell 5.1%, and Roku, down 2.2% Thursday.

However, even with the recent drop, the Ark Innovation Fund’s performance over the past year remains impressive. The fund is up 120% from its March 2020 lows and assets have ballooned from $1.5 billion U.S. to $22.9 billion U.S. in the past 12 months.

For the most part, investors have held steady during the Ark Innovation Fund’s current selloff, with a combined $611 million U.S. added to the fund in recent trading days.

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