ARKK ETF has fallen 16 percent over the last month and 35 percent from its 52-week peak. On May 10, ARKK ETF plunged 5.2 percent to a six-month low. The decline in the ETF can be attributed to the recent sell-off in the broader tech sector as investors rebalanced their portfolios in a shift towards value and cyclical.
Full Answer
Is it too late to invest in ARKK?
Unfortunately, it is too late for many of them. ARKK is certain to be remembered in financial history as the quintessence of disastrous speculation during the speculative bubble of the early 2020s. In its eight years of existence it is has destroyed more capital for more naive and innocent investors than any other investment vehicle of its time.
Should you buy broken stocks in ARKK?
They are best described as "broken stocks," and broken stocks rarely make quick comebacks. It's undeniable that the price earnings ratios of the stocks in the ARKK portfolio have come down from their peak, but it's still hard to make an argument that valuation of the stocks in ARKK makes much sense.
Are ARKK holdings overpriced?
This suggest the degree to which the holdings in ARKK were overpriced as compared to other growth stocks. Many investors have a long enough memory to recall that it worked exactly that way in 2000-2003.
Why has ARKK dropped over 30% this year and where is it headed?
Why Has ARKK Dropped Over 30% This Year And Where Is It Headed? The Ark Innovation ETF was fallen 60% from its high water mark, far more than 10%ish drop of the handful of growth stocks which top the S&P 500 and NASDAQ100.
Is ARK Innovation ETF a good dividend stock?
ARK Innovation ETF pays an annual dividend of $0.78 per share and currently has a dividend yield of 1.84%. View ARK Innovation ETF's dividend hist...
What other stocks do shareholders of ARK Innovation ETF own?
Based on aggregate information from My MarketBeat watchlists, some companies that other ARK Innovation ETF investors own include NVIDIA (NVDA) ,...
What is ARK Innovation ETF's stock symbol?
ARK Innovation ETF trades on the New York Stock Exchange (NYSE)ARCA under the ticker symbol "ARKK."
Who are ARK Innovation ETF's major shareholders?
ARK Innovation ETF's stock is owned by a number of institutional and retail investors. Top institutional shareholders include Jane Street Group LLC...
Which institutional investors are selling ARK Innovation ETF stock?
ARKK stock was sold by a variety of institutional investors in the last quarter, including Armor Advisors L.L.C., Merit Financial Group LLC, Cresse...
Which institutional investors are buying ARK Innovation ETF stock?
ARKK stock was bought by a variety of institutional investors in the last quarter, including Jane Street Group LLC, Group One Trading L.P., Deer Pa...
How do I buy shares of ARK Innovation ETF?
Shares of ARKK can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBul...
What is ARK Innovation ETF's stock price today?
One share of ARKK stock can currently be purchased for approximately $45.41.
How much money does ARK Innovation ETF make?
ARK Innovation ETF has a market capitalization of $8.48 billion.
How has ARK Innovation ETF's stock price been impacted by Coronavirus?
ARK Innovation ETF's stock was trading at $46.94 on March 11th, 2020 when Coronavirus reached pandemic status according to the World Health Organization. Since then, ARKK shares have increased by 42.7% and is now trading at $67.00. View which stocks have been most impacted by COVID-19.
Is ARK Innovation ETF a good dividend stock?
ARK Innovation ETF pays an annual dividend of $0.78 per share and currently has a dividend yield of 1.29%. View ARK Innovation ETF's dividend history.
What other stocks do shareholders of ARK Innovation ETF own?
Based on aggregate information from My MarketBeat watchlists, some companies that other ARK Innovation ETF investors own include NVIDIA (NVDA), Tesla (TSLA), Square (SQ), Alibaba Group (BABA), Intel (INTC), PayPal (PYPL), ARK Next Generation Internation ETF (ARKW), ARK Genomic Revolution Multi-Sector ETF (ARKG), Netflix (NFLX) and salesforce.com (CRM)..
What is ARK Innovation ETF's stock symbol?
ARK Innovation ETF trades on the New York Stock Exchange (NYSE)ARCA under the ticker symbol "ARKK."
Who are ARK Innovation ETF's major shareholders?
ARK Innovation ETF's stock is owned by a variety of retail and institutional investors. Top institutional investors include Goldman Sachs Group Inc. (0.00%), Goldman Sachs Group Inc. (0.00%), Susquehanna International Group LLP (0.00%), LPL Financial LLC (2.17%), Citadel Advisors LLC (0.00%) and Bank of America Corp DE (0.00%).
Which major investors are selling ARK Innovation ETF stock?
ARKK stock was sold by a variety of institutional investors in the last quarter, including Susquehanna International Group LLP, CloudAlpha Capital Management Limited Hong Kong, Sessa Capital IM L.P., CQS US LLC, Laurion Capital Management LP, Candlestick Capital Management LP, Resources Investment Advisors LLC., and PEAK6 Investments LLC.
Which major investors are buying ARK Innovation ETF stock?
ARKK stock was acquired by a variety of institutional investors in the last quarter, including JPMorgan Chase & Co., Parallax Volatility Advisers L.P., IMC Chicago LLC, Bluefin Capital Management LLC, Simplex Trading LLC, Goldman Sachs Group Inc., Goldman Sachs Group Inc., and Lombard Odier Asset Management USA Corp.
Signals & Forecast
There are mixed signals in the ETF today. The ARK INNOVATION ETF holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average.
Support, Risk & Stop-loss
ARK INNOVATION finds support from accumulated volume at $70.80 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
Is ARK INNOVATION ETF ETF A Buy?
ARK INNOVATION holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this ETF.
Summary
ARKK's banner years in 2017 and 2020 were driven by one-time gains in single investments, and by an AuM virtuous cycle.
Article Thesis
ARK Innovation ( ARKK) and other ARK ETFs have performed very well in the years prior to 2020, but that was mostly due to two single very strong years, 2017 and 2020. The tailwinds that persisted during these periods waned, and ARKK is now battling with substantial outflows that could hurt its investment model considerably.
A Strong Track Record, Driven By One-Off Items
ARK Innovation proudly presents its track record, showing that the ETF has delivered a 40% annual return over the last five years. When we take a closer look, however, we see that those returns have been generated very unevenly:
Fund Flows Can Help You, But They Can Also Hurt You
ARKK and other ARK ETFs have seen explosive AUM growth in 2020 and early 2021, which helped fuel the NAV returns they generated in that time. New investors that saw the excellent NAV performance in 2020 rushed into ARK's ETFs, thereby generating additional cash for these ETFs to invest.
Macro Picture Works Against ARKK
Cathie Wood has famously made bold predictions about inflation, commodity prices, etc. that have, so far, not really come true. Inflation is not turning into deflation, as predicted by her team, but is instead roaring and at 30-year highs. Commodity prices, e.g. for crude oil, are not falling as predicted by her team, but rather soaring.
Takeaway
For someone that bought into ARKK in early 2017, this investment turned out very well. The same holds true for someone that bought into ARKK in early 2020.