ARK Invest, the New York-based investment management firm led by the popular money manager Cathie Wood, saw its five actively managed exchange-traded funds and two self-indexed ETFs underperform the S&P 500 index in the second quarter.
That said, Ark’s flagship fund ARK Innovation ETF (NYSE: ARKK), which counts electric vehicle maker Tesla Inc (NASDAQ: TSLA) among its top holdings, outperformed the broad-based global indexes. ARKK returned 9.4% in the quarter compared to the S&P 500 Index’s return of 8.5%.
For perspective, barring Roku Inc (NASDAQ: ROKU), which has risen 13% during the second quarter, all the other top four Ark ETF holdings have declined during the period.
Shares of Tesla, the largest holding for Ark, fell 7.44% in the second quarter, while Square Inc (NYSE: SQ), Teladoc Health Inc (NYSE: TDOC) and Spotify Technology SA (NYSE: SPOT) fell 2%, 17%, and 9.8%, respectively.
Here’s how each of the ARK ETFs performed in the second quarter:
Ark Autonomous Technology & Robotics ETF (BATS: ARKQ): ARKQ, which counts Tesla and JD.com Inc (NASDAQ: JD) among top holdings, underperformed the broad-based market indexes during the quarter led by detractors Workhorse Group Inc (NASDAQ: WKHS) and Virgin Galactic Holdings Inc (NYSE: SPCE).
ARKQ completely shed its positions in both the stocks in the second quarter.
ARKQ returned 2.7% in the second quarter.
Ark Next Generation Internet ETF (NYSE: ARKW): ARKW underperformed the broad-based market indexes during the quarter with a return of 4.5%. Grayscale Bitcoin Trust (OTC: GBTC) and Coinbase Global Inc (NASDAQ: COIN) were among the top detractors as both suffered from the drop in Bitcoin (CRYPTO: BTC) and other cryptocurrencies.
Roku and Trade Desk Inc (NASDAQ: TTD) were among the top-performing holdings.
ARKW returned 4.5% in the second quarter.
Ark Genomic Revolution ETF (BATS: ARKG): Yet another ETF that underperformed the broad-based market indexes during the quarter. Both Teladoc and Iovance Biotherapeutics Inc (NASDAQ: IOVA) were among the top losers.
TDOC depreciated amid competitive incursions into the digital health space including that of Amazon.com Inc (NASDAQ: AMZN). Iovance disclosed that Maria Fardis, CEO for the last five years, would be leaving to pursue other opportunities.
ARKG surged 4.25% in the second quarter.
Ark Fintech Innovation ETF (NYSE: ARKF): ARKF too underperformed the broad-based market indexes during the quarter led by Silvergate Capital Corp (NYSE: SI) and Coinbase. Silvergate Capital shares traded down, primarily in response to a sharp drop in the prices of cryptocurrencies.
Shopify Inc (NYSE: SHOP) was among the top performers.
ARKF returned 5.9% in the second quarter.
Ark Space Exploration & Innovation ETF (BATS: ARKX): ARKX underperformed the broad-based market indexes during the quarter led by Komatsu Ltd (OTC: KMTUY), which suffered from a broader selloff in construction and mining stocks and SPCE.
Nvidia Corp (NASDAQ: NVDA) was among the top contributors and appreciated in response to stronger than expected first-quarter earnings and guidance, a higher probability that it will succeed in acquiring ARM, sell-side upgrades, and a strong move in semiconductor stocks.
ARKX, the newest ETF which completed a quarter in June since it began trading, returned 2.14% in the second quarter.
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