Tesla Inc TSLA-heavy exchange-traded fund ARK Innovation ETF 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 NVTA at 7.3%, Square Inc SQ at 6.6%, and Roku Inc 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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