Cathie Wood’s ARK Innovation exchange$ARK Innovation ETF(ARKK)$ -traded fund keeps falling, but investors aren’t jumping ship.Shares of the popular ETF, which is known by its ticker ARKK, have declined 45% so far in 2022—including 21% in April alone—as rising interest rates punish stocks that are valued on the prospect of robust future growth.Those are just the type of companies that ARKK targets through its investment theme of “disruptive innovation.” Its big holdings include Tesla Inc. , Zoom Video Communications Inc. , Roku Inc. , Teladoc Health Inc. and Coinbase Global Inc. With the exception of Tesla, those stocks have all fallen more than 35% this year.
The S&P 500 has dropped 10% over the same period, while the tech-heavy Nasdaq Composite has retreated 18%.
Ms. Wood and her fund shot to prominence in 2020, when its shares soared nearly 150% as the Federal Reserve slashed interest rates to near zero and investors loaded up on risk. The S&P 500, by comparison, rose 16% that year.
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