ARKK Gains Over 3% Friday as Broader Market Falls | ETF Trends

Shares of the ARK Innovation ETF (ARKK) increased on Friday as all of the fund’s top holdings surged ahead of the U.S. holiday weekend.

ARKK was up over 3.5% by late morning on Friday as the broader market struggled after just closing the first half of the year at a loss. All three major U.S. stock indexes finished June and the second quarter in negative territory, with the S&P 500 facing its steepest first-half percentage drop since 1970. The Nasdaq had its largest-ever January-June percentage drop, while the Dow suffered its biggest first-half percentage plunge since 1962, Reuters reported. 

ARKK is an actively managed ETF that invests at least 65% of its assets in companies relevant to the investment theme of disruptive innovation. This includes companies that rely on or benefit from the development of new products or services, technological improvements, and advancements in scientific research relating to the areas of DNA technologies and the “genomic revolution,” automation, robotics, energy storage, artificial intelligence and the “next-generation internet,” and fintech innovation.

The top 10 holdings in ARKK as of July 1 include: Zoom Video Communications (ZM, 10.18%); Tesla Inc (TSLA, 8.73%); Roku Inc (ROKU, 8.25%); CRISPR Therapeutics AG (CRSP, 5.23%); UiPath Inc (PATH, 4.95%); Teladoc Health Inc (TDOC, 4.68%); Exact Sciences Corp (EXAS, 4.59%); Block Inc (SQ, 4.47%); Intellia Therapeutics Inc (NTLA, 4.20%); and Twilio Inc (TWLO, 3.78%), according to the fund’s website.

By late morning Friday, shares of Teladoc were up over 5%, and CRISPR and Block are each up over 4%. Exact Sciences, Zoom, and Intellia have each increased over 3%. Roku and UiPath are up over 2%, according to YCharts.

ARKK rose in ranks after returning 35.23% in 2019 and 152.52% in 2020, proving that active management — with quality stock selections — is more than capable of outperforming broad indexes. 

The fund has faltered in recent history as the broader markets are challenged by the current economic environment and growth stocks continue to hit the hardest.

The fund is down 57.84% year to date, according to VettaFi, but investors have maintained their loyalty and conviction in the strategy and its ability to rebound. ARKK saw $658 million in net inflows in May, bringing the year-to-date net inflows to $1.5 billion as of the end of May.

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