ARK Invest
Cathie Wood's flagship exchange-traded fund tumbled by more than 5% on Monday to its lowest point so far this year as inflation fears drove a big selloff in high-growth tech stocks.
The ARK Innovation ETF, an actively managed fund that invests in disruptive technology from electric vehicles to autonomous driving, has tumbled over 16% year-to-date.
Wood's flagship fund, which started trading in 2014 and currently has more than $22 billion in assets under management, has fallen around 32% since its February 12 peak of around $153.
The fund's top holdings were all in the red as of Monday afternoon. Leading the downturn is Tesla, which slipped 5.5%, and Teledoc Health, which fell 7.2%. Roku and Square were lower by 5% and 7% respectively.
Rising inflation fears are driving the selloff Monday, with investors are weighing whether rising costs will derail the record-setting rally in stocks.
"While we remain conscious of the potential for rising interest rates, inflation risks, and higher taxes, we are not overly concerned with any of these risks as market fundamentals remain solid amid a gradual normalization of economic activity and policy stimulus," Andrea Bevis, senior vice president at UBS Private Wealth Management, said in a statement.
Wood, however, shrugged off concerns surrounding technology shares, telling CNBC on Friday that she loves the setup for her ETFs.
"The worst thing that could have happened to us is to have the market narrowly focus on just our ilk of stock — the innovation space," the star stock picker told CNBC.
Still, all of Wood's five ETFs combined have lost about $2 billion in May, according to FactSet as first reported by CNBC.
Wood had a banner year in 2020, earning her a cult-like following in the industry. Her funds delivered eye-popping returns with her ARKK up more than 150% in 2020 — a flip so far compared to this year.
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