Cathie Wood's ARKK ETF Gains 31% in November Despite Investor Caution
In November, Cathie Wood's ARKK Innovation ETF witnessed a remarkable surge, achieving an all-time high of 31% gain. This upswing can be attributed to the positive outlook from investors who are hopeful for potential interest rate cuts in the US by 2024, thereby driving growth in risky assets.
The November rally of $ARK Innovation ETF(ARKK.US$ is notable, especially when compared to the performance of mega-cap tech stocks that have dominated the majority of the year. The ETF's major holdings, such as Coinbase and Roku, have witnessed more than 60% gains, which have been instrumental in driving ARKK's record growth during the month.
ARKK achieved its greatest monthly outperformance to date against the Nasdaq 100 and S&P 500 indices, which have risen by 10.7% and 8.9%, respectively.
Although ARKK managed to attract a notable $150 million in November, it falls short when compared to the usual monthly inflows of $1 billion that were common during the pandemic peak. 2023 is projected to be the first year where ARKK will register an annual net outflow.
ARKK has been leading the impressive performances, but other funds managed by ARK Investment Management have also seen remarkable gains. Nonetheless, all of these funds are currently experiencing net outflows.
Investors are scarred from their ARK experience over the past several years," said Nate Geraci, president of the ETF Store. "It's going to take a long period of sustained outperformance to bring ARK investors back en masse."
Source: Investing.com, Bloomberg
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