After a year of staggering performance in growth and technology (the Nasdaq returned 42% for the year), the recent weakness was largely foreseeable, and the arrival of volatility and selling pressure in tech and growth stocks that had previously been steering the market rally was enough to bring the Nasdaq into correction territory.
It weighed on the markets broadly, but it fell particularly hard on the shoulders of the red-hot ARK Innovation ETF and its founder, Cathie Wood.
ARK is an investment manager with a growing lineup of ETFs that has benefited in a big way from the uptrend in “disruptive technology” stocks such as Tesla (TSLA), Square (SQ) and Zoom (ZM) among others. This success has made Cathie Wood the investing world’s new superstar.
And as these disruptive stocks have outperformed the market, assets under management at ARK skyrocketed from just $3.6 billion a year ago to more than $50 billion recently, according to Bloomberg.