Cathie Wood fans are back at it — and this time they got the timing right.
Dip-buyers rushed into Wood's flagship exchange-traded fund on Tuesday, adding more than $341 million to the ARK Innovation ETF (ticker ARKK), the largest single-day inflow since May of last year, according to data compiled by Bloomberg. A day later, ARKK jumped 10.4%, its steepest surge since last March.
Wood has received both ire and praise for her dogged style of handpicking long-term growth companies with visionary stories. Believers in her approach have steadily added money to ARKK, with the ETF on track for the sixth straight week of inflows.
This is despite the fund losing roughly 35% so far this year. Many are using the decline as an opportunity to buy the fund, analysts said.
"ARKK is just a monster of an ETF nowadays," said James Seyffart at Bloomberg Intelligence. "People are trading it as if it were a non-profitable tech basket."
Meanwhile, the Tuttle Capital Short Innovation ETF (SARK), which is structured to deliver the inverse of ARK Innovation's performance each day, posted a 10% decline on Wednesday, its largest drop since its inception at the end of last year.
BI's Seyffart says SARK has added to its competitor's ecosystem, which in addition to the inverse fund also includes options on ARKK.
