- Investors poured out of Cathie Wood's flagship innovation ETF at the fastest quarterly pace on record, according to a new Bloomberg report.
- The ARK Innovation ETF, also called ARKK, saw $1.97 billion in outflows in the third quarter, marking the steepest-ever move out of the fund since its 2014 launch.
- The turbulent quarter for ARKK adds to a tough year for the popular tech-focused ETF.
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Investors poured out of Cathie Wood's flagship innovation ETF at the fastest quarterly pace on record, according to a new Bloomberg report.
The ARK Innovation ETF, also called ARKK, saw $1.97 billion in outflows in the third quarter, marking the steepest-ever move out of the fund since its 2014 launch. Investors began to balk at ARKK in July, a trend that gained momentum throughout August and September.
Data for the last trading day of the quarter was not yet available, so that outflow number could still move around a bit, according to Bloomberg.
The turbulent quarter for ARKK adds to a tough year for the popular tech-focused ETF. After exploding nearly 150% in 2020, the fund is down more than 11% so far in 2021 and is being hit by regular outflows.
Worse, short bets against ARKK are mounting. In August, "Big Short" investor Michael Burry unveiled that he bought $31 million worth of put options that would profit from ARKK falling. Burry's bet came just weeks after data showing that short interest in ARKK had hit an all-time high of $2.7 billion.
ARKK's weak third quarter came during a mixed month for stock markets as concerns about supply chains, inflation, and overly optimistic valuations piled up. The broader S&P rose only 2.5% during the quarter, dragged down by a gloomier September that saw a nearly 5% drop.
