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ARKK has been declining heavily lately, and according to some analysts it has been the culprit of a bunch of Nasdaq crashes the past 3 months. Seemly ARKK is f
by speeder 5y ago
ARKK has been declining heavily lately, and according to some analysts it has been the culprit of a bunch of Nasdaq crashes the past 3 months.
Seemly ARKK is focused on tech stocks, and as they keep losing share price they keep selling FAANG stocks to buy their own shares or smaller companies shares in an attempt to stall their losses.
There was lots of speculation they were going to crash hard like Archegos did, and that was BEFORE the Archegos involvement was known.
- hogFeast 5y agoWhen ARKK blows up it will precipitate a change in how some ETFs operate. ARKK is basically Archegos-lite (with retail investors bag-holding, not investment banks), they have invested heavily in a few stocks, have cornered the price, and when the fire alarm goes off they are the fat guy that gets jammed in the fire door. The fundamental principle of an ETF is liquidity, ARKK has wilfully debauched the concept for their own gain. You are seeing this with a few other ETFs, particularly INRG...amazingly given that they blew up in 2008 for the same reason, but a lot of these are attempting to manage the concentration risk (INRG recently rebalanced). ARKK is just pure greed: marketing fiction, aggressively corner the market, fuck the customers, fuck the consequences.
- cj 5y agoFor anyone curious, ARKK holdings are public (as are all ETFs). Here's a PDF. https://ark-funds.com/wp-content/fundsiteliterature/holdings/ARK_INNOVATION_ETF_ARKK_HOLDINGS.pdf https://ark-funds.com/wp-content/fundsiteliterature/holdings...
- grey-area 5y agoI love that some of their ETFs also contain their other ETFs, it’s turtles all the way down!