Ark Innovation ETF Buys $7 Million of AI Stock While Down 4.19% YTD
Cathie Wood’s Ark Innovation ETF purchased $7 million of a top AI stock during the market sell-off, as the fund is down 4.19% year-to-date versus a 0.93% gain for the S&P 500. The ETF’s five-year annualized return is –10.55% versus the S&P’s 14.30%, with $1.44 billion in net outflows.
1. AI Stock Acquisition
Cathie Wood’s Ark Innovation ETF allocated $7 million to a leading AI company during the recent market sell-off, reflecting continued confidence in high-growth tech names despite broader declines.
2. Year-to-Date Underperformance
The ETF is down 4.19% year-to-date compared with a 0.93% gain for the S&P 500, marking a weaker start to the year for growth-focused tech exposure.
3. Volatility and Historical Returns
After delivering a 153% return in 2020 and a 35.49% gain in 2023, the fund tumbled over 60% in 2022, contributing to a five-year annualized return of –10.55% versus 14.30% for the S&P 500.
4. Significant Investor Outflows
Over the 12 months through Feb. 24, the ETF saw roughly $1.44 billion in net outflows, adding to the $7 billion of investor wealth erased by the fund since 2014.