Market Overview

Tesla-Heavy ETF Fund Gets Record $124M Inflow In A Day

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Tesla-Heavy ETF Fund Gets Record $124M Inflow In A Day

Tesla Inc (NASDAQ: TSLA)-heavy exchange-traded fund ARK Innovation ETF (NYSE: ARKK) saw record inflows amounting to $124 million on Wednesday, data compiled by Bloomberg indicates.

What Happened

Investors have so far pumped in nearly $3.1 billion into the ETF this year, taking its total assets to $7.4 billion, according to Bloomberg.

The “disruptive-innovation” fund invested 10% of its total asset value in the Elon Musk-led automaker as of Aug. 19.

Other noteworthy investments in terms of total asset value were InVitae Corp (NYSE: NVTA) at 7.3%, Square Inc (NYSE: SQ) at 6.6%, and Roku Inc (NASDAQ: ROKU) at 4.6%.

Why It Matters

The Cathie Wood-managed fund is benefiting as traders look to bet on new technologies, Bloomberg noted.

The actively managed ETF has returned 77.4% year-till-date, while its largest holding Tesla has returned nearly 378% YTD.

On Thursday, the Elon Musk-led automaker’s shares spiked sharply by 6.2%, briefly crossing $2,000 levels, reportedly due to strange option trading activity

Square, another large holding, has rallied nearly 150% as the Jack Dorsey-led company’s Cash App profits were buoyed by Bitcoin revenues.

Price Action 

ARK Innovation ETF closed 0.7% higher at $89.48 a piece on Thursday. 

 

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Posted-In: Bloomberg Elon MuskNews Broad U.S. Equity ETFs Top Stories ETFs Best of Benzinga

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