Tesla and Zoom drag down Cathie Wood's flagship Ark ETF

ARK Innovation ETF, the best-performing ETF of 2020, is among the worst-performing of 543 funds in its category so far this year. In the past week, more than US$290mln of investor cash has flowed out of the fund, according to FactSet, following the final two weeks last month that saw more than $600mln of net outflows, according to Refinitiv Lipper. Run by Cathie Wood, the US$23.1bn fund gain less than 1% in April, versus an average by peers of nearer 4%, according to Morningstar data, and a gain of over 4% from the S&P 500. Although ARK Innovation hit highs in February, its record since the start of 2021 is a decline of 9%, dropping it in the bottom 100th percentile in Morningstar's category of mid-cap growth funds. In that same time, the S&P 500 has gained over 13%, while the tech-powered Nasdaq Composite has risen over 9%. Yet it is the wobbles suffered by some of its tech investments that are thought to have beset Wood’s flagship fund, which gained popularity after surging almost 150% last year. Its two biggest holdings are Tesla (NASDAQ:TSLA) and Teladoc Health (NYSE:TDOC), at more than 10% and 6% of the fund respectively and which have fallen over 4% and 20% since the start of the year. Other struggling stocks among the top 10 holdings include Zillow Group (NASDAQ:ZG) and Zoom Video Communications (NASDAQ:ZM), down 9% and 15%.