Ark Investment Management (Ark Invest) has fallen off the list of the world’s 10 biggest issuers of exchange traded funds (ETFs).
With $42.4 billion U.S. in its various ETFs, Ark Invest, led by famed investor Cathie Wood, now ranks as the 11th largest issuer by assets, according to data released by Bloomberg Intelligence.
Ark Invest had entered the top 10 list earlier this year as investors flocked to its funds that focus heavily on innovation and disruptive technology. But competition is rising just as the shine comes off Ark’s flagship $21 billion U.S. ARK Innovation ETF.
That flagship fund has fallen more than 5% this year after soaring nearly 150% in 2020 as the prospect of inflation and rising interest rates have hurt the long-term technology bets favored by Cathie Wood.
As Ark Invest’s assets have fallen, rival WisdomTree has edged ahead and entered the top 10 list of ETF issuers.
Ark Invest’s ETFs beat most of the market in 2020, boosted by hefty allocations to electric-vehicle maker Tesla and other disruptive stocks. That outperformance came to an abrupt end this past spring as a spike in Treasury yields hurt growth-oriented stocks.
Ark Invest’s funds have seen a total of $12.6 billion U.S. of inflows year-to-date.
