Cathie Wood of ARK Invest is among the most well-known growth-oriented fund managers. Her flagship ARK Innovation ETF (ARKK) lost over two-thirds of value last year. However, year to date (YTD) the ETF has gained 55% and is outperforming the Nasdaq Composite ($NASX) by a wide margin in 2023.
Despite the rise in 2023, ARKK is still well below its February 2021 peak. Almost all of the holdings of the ETF are growth names and many are loss-making companies – the latter has especially been out of favor with investors amid tightening credit markets.
