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Benzinga
Benzinga
Business
Adam Eckert

Why Ark Innovation ETF Hit 52-Week Lows Today

ARK Innovation ETF (NYSE:ARKK) is making new 52-week lows on Monday, led by sharp declines in the top holdings of Ark's flagship fund.

The ARK Innovation fund is made up of disruptive growth stocks in the technology sector. Shares of several tech companies are trading lower amid overall weakness as traders continue to digest last week's rate hike.

The Federal Reserve raised rates by 50 basis points last Wednesday, its first rate hike of at least half a percentage point in more than 20 years. Stocks surged following the announcement, but pulled back significantly the following day and have continued on a downward trajectory since.

An increase in yields has also pressured technology and growth stocks, ,as an increase in rates lowers the present value of future cash flows. The 10 Year Treasury yield was hovering around 3.059% at last check. 

Tesla Inc (NASDAQ:TSLA) is the top holding in the ARK Innovation ETF with a 9.61% weighting. The stock was down 7.96% at $796.88 at press time.

Related Link: Why Tesla Shares Are Diving Today

Other top holdings include Roku Inc (NASDAQ:ROKU), Zoom Video Communications Inc (NASDAQ:ZM), Block Inc (NYSE:SQ) and Exact Sciences Corp (NASDAQ:EXAS). All of the top holdings in the Innovation fund were down significantly at press time. 

Ark Invest founder and CEO Cathie Wood continues to reaffirm her expectations for significant price appreciation in the innovation space over a five-year period.

ARKK Price Action: The Ark Innovation ETF was down 9.01 % at $41.52 at time of publication.

Photo: courtesy of Tesla.

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