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Reuters has reported that ARKK ETF run by Cathie Wood’s ARK Fund has shown underperformance in July as well as Bitcoin and Coinbase that ARK has supported with investment.
ARKK exchange-traded fund’s portfolio contains the shared of Tesla, Zoom, Spotify, Square lead by the Bitcoiner Jack Dorsey, largest US-based crypto exchange Coinbase, etc.
ARKK drops 7.1% in July
While in 2020, the ETF demonstrated a good performance and outperformed other US-based equity funds, in July 2021, the $22.4 billion ARKK is 7.1 percent down.
It has dropped to the 96th percentile rank on the list of the 605 funds with mid-cap growth that Morningstar tracks.
In the meantime, the S&P 50) index that focuses on big tech companies, among other global giants, like Coca Cola, Walmart, Starbucks, etc, has risen 2.4 percent after a 5.8 percent growth shown in April.
Overall, according to Reuters, ARKK has declined 2.5 percent this year, while the big-tech-focused S&P 500 is 17.1 percent up.
Last year, ARKK surged thanks to Zoom and Tedaloc Health Inc that became vastly popular amidst the global lockdown.
ARKK’s Tesla, Square, Coinbase shares drop
The ETF’s low performance has been caused by that of the companies it is invested in – Tesla (almost 10.5 percent of ARKK’s portfolio, 4.8 percent down), Coinbase (5 percent down), Zoom (dropped 4.5 percent in July), Spotify (has shown 19 percent declined).
Still, investors seem to believe in Cathie Wood and her company as ARK raked in over $521 million by July 21.
ARK ETF’s portfolio contains GBTC
Wood’s company holds Grayscale Bitcoin Trust shares (GBTC) for its ARK Next Generation Internet ETF. On July 21, it bought an additional 140,157 GBTC on the dip when the flagship cryptocurrency was trading at the $30,000 level.
A day before, it had purchased 310,000 GBTC from Grayscale. Counting the previous GBTC purchases, the ETF currently holds 9 million Bitcoin shares.
Similar to ARKK, this ETF is also invested in Tesla and Square.