Cathie Wood’s ‘Phenomenal Rise’ Brings ETF Assets to $60 Billion
It’s another milestone for Cathie Wood’s Ark Investment Management.
Less than two weeks after hitting $50 billion in assets, the red-hot firm now manages more than $60 billion, as funds flow into Wood’s exchange-traded funds at the fastest pace ever. Last week alone, the Ark family added almost $3.8 billion with five of its funds notching record weeks of inflows, according to data compiled by Bloomberg.
“Ark’s phenomenal rise proved two things: 1. True active management is still alive and well, and loved. 2. The ETF is a tested structure for active management in full transparency,” Linda Zhang, chief executive officer of Purview Investments, said in an email. “Yet very few firms are able to replicate ARK’s success, because truly skilled managers with bold convictions are rare in the industry.”
The continuous torrent of money shows no signs of slowing down, with Wood’s gains further cementing her status as one of this year’s best stock pickers. Her firm is now the seventh largest exchange-traded fund issuer in the $5.9 trillion industry, one month after first cracking the top 10.
“Investors do not care if active management is inside an ETF or a mutual fund, just that management has been successful in identifying strong growth stocks,” said Todd Rosenbluth, CFRA Research’s director of ETF research.
Wood’s selection of innovative companies has driven her flagship $28 billion ARK Innovation ETF (ARKK) up more than 24% this year, compared to 4.7% for the S&P 500. At the same time, her ARK Autonomous Technology and Robotics ETF (ARKQ) has gained 29%.
What a difference a year can make. This time in 2020, Ark managed just $3.6 billion in ETF assets.