ARK Investment Management LLC’s high-flying exchange-traded funds are firmly in a declining market following another round of strong falls on Friday.
New York asset manager Cathie Wood’s five major ETFs fell between 4% and 7% during recent trading as technology and other high-growth stocks continued to sell out. Those declines have pushed ARK’s funds by more than 20% from their most recent highs, meeting the traditional threshold used to determine when securities and indices have entered a bear market.
ARK’s ETFs have fallen past the broader stock market. The S&P 500, which ARK uses as a benchmark for its equity, is down about 5% from its high on February 12.
ARK’s main innovation fund has been hit the hardest. The $ 23 billion fund was down 31% from its previous high, with about half of those declines this week alone. The drops for ARK’s other funds were not far off. That’s likely because some of the shares in Ms. Wood’s funds have been largely exposed to growth trading, which has fueled the market in the face of a steeper yield curve.
Some of the ARK funds have heavy holdings in companies such as Tesla Inc., the electric vehicle manufacturer, the streaming service Roku Inc. and the digital payment company Square Inc. All of these three stocks are at least 28% off their most recent high.