ARK Investment Management LLC Chief Executive Cathie Wood remains unperturbed by the decline of the innovation exchange-traded fund, MarketWatch reported.
- “I love this setup,” Wood said in an interview with CNBC, reacting to the recent decline of the ARKK ETF.
- Wood said the worst case that could have happened is to have the market narrowly focus on just the innovation space.
- ARKK fell 9.2% in the month-to-date, even after a 1.3% bounce on Friday.
- The ETF remains up in the past year by almost 94%, but down 11.9% year-to-date and even down further by 31% from its high recorded in February.
- With the recent decline, Wood said that nothing has changed for the fund except for the price, with the compound annual return now expected at 25% to 30%.
- Prior to the decline, Wood in February said strategies are likely to produce a 15% return.
- Investors have veered away from technology and other growth stocks sensitive to interest rates after the climb in U.S. Treasury yields in both February and March.
ARKK: NYSEARCA is down 4.95%.