Investors Pull $2.2B From Cathie Wood’s ARK ETF In 2024, More Than The Last Two Years Combined
Cathie Wood’s ARK funds have hit an iceberg, but will it sink or sail on? Just four months into 2024, the investment firm’s once-revered exchange-traded funds (ETFs) have seen $2.2B in outflows — with its flagship ARK Innovation ETF hit the hardest. The recent downturn surpasses last year’s outflows, bringing total assets down to $11.1B — a stark drop from a high of $59B in 2021.
- Back in 2020, ARK funds attracted $20B in deposits — but since then, the firm has seen a staggering $14.3B in investor money vanish, making it the biggest loss among asset managers over the past decade.
- To start 2024, shares slumped by 19% — primarily driven by Tesla, ARK’s largest holding, which plummeted ~45%, along with the absence of Nvidia.
But can ARK weather the storm? ARK hopes to bounce back, especially if the Federal Reserve lowers interest rates. During its boom days, ARK’s funds rallied amid demand for growth stocks — and it hopes to capitalize again with the most growth-y stocks it can through its publicly-traded ARK Venture Fund. Cathie Wood maintains a bullish stance, standing firm in her belief in ARK’s core investment themes and her confidence in Tesla’s future, for which she predicts a five-year price target of $2K, despite its current struggles.
