Cathie Wood's ARK Innovation ETF Achieves 35% Gain In November, Its Best Month Since Inception
Portfolio Pulse from Piero Cingari
Cathie Wood's ARK Innovation ETF (ARKK) recorded a 35% gain in November, its best month since inception. ARK Fintech Innovation ETF (ARKF) also performed similarly. Despite these gains, ARKK is still 70% below its peak from February 2021. The performance was influenced by the Federal Reserve's steady interest rates and expectations of future rate cuts. Top contributors to ARKK's performance include Coinbase Global Inc (COIN), Roku, Inc. (ROKU), and Block, Inc. (SQ).
November 29, 2023 | 6:32 pm
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NEUTRAL IMPACT
ARKK outperformed the broader tech sector, as tracked by the Invesco QQQ Trust (QQQ), with a year-to-date rise of 55%.
While ARKK's outperformance is notable, QQQ's broader market representation makes it less susceptible to the same level of volatility.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
ARK Fintech Innovation ETF (ARKF) mirrored ARKK's performance with similar returns in November.
ARKF's performance, closely following ARKK's, indicates a positive short-term outlook, especially given the broader tech sector's rally.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
ARKK achieved its best monthly performance since inception with a 35% gain in November, but remains 70% below its all-time high from February 2021.
ARKK's significant monthly gain is a strong positive signal for short-term momentum, but its distance from the all-time high suggests caution for long-term investors.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Coinbase Global Inc (COIN) was the top contributor to ARKK's November performance, with an 80% surge and a 7 percentage point return contribution.
COIN's substantial contribution to ARKK's performance and the cryptocurrency rally suggest a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90