Cathie Wood, the founder, CEO and CIO of ARK Investment Management, has had a tough year in the stock market as all eight of the company’s exchange-traded funds (ETFs) were down substantially lower than the S&P 500.
On Thursday, the ARK Innovation ETF ARKK was up closing at approximately 14.52%. On Friday, it was still up 13.80% at market close.
The recent surge in the stock market can be attributed to a cooler-than-expected CPI print of 7.7% for October.
What Happened: For the purpose of this article, Benzinga will delve into ARK Innovation ETF’s holdings to discover which stocks contributed the most to gains over the past five days.
- DraftKings DKNG is up roughly 30%.
- Twilio TWLO is up roughly 27%.
- Unity Software Inc U is up approximately 25%.
- Shopify Inc SHOP is up approximately 22%.
- Exact Sciences Corp EXAS is up over 22%.
- Teladoc Health Inc TDOC is up more than 20%.
- Roku ROKU is up roughly 21%.
Why This Matters: Since Wood’s ARK Innovation ETF was down roughly 58% year-to-date, it is good to find improvement in the fund that coincided with less inflation and lower interest rates.
The ARK Innovation ETF invests in “disruptive innovation,” which are companies that benefit from the development of new products or services, specifically technological improvements that potentially change the way the world works.
These types of investments typically fare well in a low-interest rate environment with lower inflation, which makes it easier for these firms to find liquidity when needed.
As inflation slightly cooled down in October, many economists are expecting a 50 bps hike in the December meeting which can extend the bear market rally.
ARKK Price Action: Ark Innovation ETF shares were up at $40.40 at market close Friday afternoon.
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