Ark Innovation ETF Manager Buys $27 Million of Tech Stock Slumped 30% YTD
Ark Innovation ETF manager Cathie Wood added $27 million of a tech holding that’s slumped over 30% year to date, increasing exposure to volatile high-growth sectors. As of March 7, the fund has fallen about 7% YTD and delivered a five-year annualized return of -9% versus the S&P 500’s +13.54%.
1. $27M Tech Stock Acquisition
Cathie Wood allocated $27 million to a single tech holding that has declined more than 30% year to date, reflecting her strategy to buy on pullbacks and concentrate positions in high-volatility sectors.
2. YTD Performance Under Pressure
As of March 7, the Ark Innovation ETF is down roughly 7% year to date, lagging the S&P 500’s 1.5% drop, despite a 35.49% gain in the fund last year versus the index’s 17.88% return.
3. Five-Year Returns Lag Benchmark
Over the past five years, the fund has produced an annualized return of -9%, trailing the S&P 500’s 13.54% gain and wiping out approximately $7 billion in investor wealth since its 2014 inception.
4. Investor Outflows and Growth Outlook
The ETF experienced about $1.2 billion in net outflows over the past 12 months, even as Wood projects a major capital-spending cycle in AI, robotics and related technologies driving a sharp economic rebound in 2026.