After a meteoric rise in the ranking of American exchange-traded funds, Ark Investment Management begins to lose ground.
According to Bloomberg Intelligence, Katie Wood company, having in its ETF about $42,4 billion, now ranks 11th in terms of assets. At the beginning of this year, the management company entered the top ten, due to the flow of funds, as investors flocked to Wood's innovative vision. But the competition grows just then, when the gloss of the main fund ARK Innovation ETF (ticker ARKK) cost 21 a billion dollars is losing its precious shine.
While the company's assets declined slightly, WisdomTree's competitors take the lead. Meanwhile, Industry Newcomer Dimensional Fund Advisors Comes On Ark's Heels: after the recent transformations of mutual funds by the quantum giant, there are less than $3 billion difference.
In parallel this year, after takeoff almost 150% in 2020 year, as the outlook for inflation and rate hikes dull long-term technology rates, preferred by Wood. Although rates have dropped over the past months, many of Ark's former high-yielding stocks have yet to recover, as inflationary concerns persist.
Certainly, Ark funds are still in inflow this year $12,6 billion. According to Erik Balchunas of Bloomberg Intelligence, it's too early to talk about the withering of the company. A year ago, all Wood ETFs totaled about $15 billion. Assuming, that there will be no mass exodus, maybe, what's the ark mania" can ignite again, if speculative tech stocks come into fashion again, analyst said. `` At the moment, Ark is alive and well, his condition exceeds 40 billion dollars, which is a startling amount for an individual active issuer. Very likely, that overcoming the current uncertainties in the market, the fund will again be able to enter the top of the desired investment objects '', – Balchunas said.