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ARK Innovation ETF (ARKK) Stock Is Down 55% YTD. What Next?

Simon Mugo trader
Updated 9 Sep 2022

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Key points:

  • ARK Innovation ETF (ARKK) stock is down 55.5% in 2022. What’s next?
  • The fund’s CEO Cathie Wood has appointed a new ‘chief futurist.’
  • Wood is looking to position her fund to profit from future trends.

The ARK Innovation ETF (NYSEARCA: ARKK) stock price has fallen 55.5% in 2022 amid a broader market selloff that has seen many of the tech stocks championed by the company fall significantly. As a result, many investors are wondering what comes next for ARKK.

Investors got a glimpse of what Cathie Wood, the founder of the legendary firm Ark Investment Management behind the ARK ETFs, is planning. The Ark Invest CEO named Brett Winton, its research director, the new ‘chief futurist’ at the fund.

Also read: The Five Best ETFs To Buy During A Recession.

Brett will “focus on the convergence between and among the five innovation platforms” targeted by the fund. The innovation platforms include artificial intelligence, energy storage, robotics, blockchain technology and genomic sequencing.

The move to appoint a ‘chief futurist’ is strategic as Ark Invest seeks to reposition its funds as futuristic instead of funds that can provide a return for the investor within short periods. The poor performance of Ark’s funds this year has raised questions about the fund’s past successes and high returns.

Cathie Wood is looking to ease the pressure on her to maintain the high returns notched by her ETFs in 2020 and 2021 after the Federal Reserve opened the floodgates for quantitative easing and printed trillions of dollars that found their way into the stock markets pushing stocks and indices to record-highs.

Ark invest also promoted four senior research analysts to directors and hired five new research associates as it looks to find the next big stocks that are yet to be discovered by other fund managers.

However, Cathie Wood is not the only one hunting for new investments that could underpin her company’s future returns. Many venture capital firms are looking for the next big technologies and firms, not forgetting private equity firms also looking for investments.

Most analysts do not expect Cathie Wood to retire soon, given that she is 66, yet we have fund managers such as Warren Buffett at 92 years.

*This is not investment advice.

ARK Innovation ETF (ARKK) stock price.

ARK Innovation ETF (ARKK) stock price 09-09-2022
Source: Tradingview

The Ark Innovation ETF (ARKK) stock price has fallen 55.52% in 2022, with many hoping it will recover.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading