Tesla-dependent ETF sees record inflow after 24 weeks of gains

[NEW YORK] An exchange-traded fund that is heavily weighted in Tesla saw a record inflow.

Investors added US$124 million to ARK Innovation ETF (ARKK) on Wednesday, according to data compiled by Bloomberg. So far this year, the "disruptive-innovation" fund has received almost US$3.1 billion, boosting its total assets to US$7.4 billion.

ARKK has surged in popularity since the coronavirus pandemic rattled global markets, as traders seek to bet on companies developing groundbreaking technology. The actively-managed fund led by Cathie Wood has a 77.4 per cent return year-to-date, placing it in the top five best performing equity ETFs, along with two of the firm's other products that focus on genomics and internet technology.

Shares of Tesla, the fund's largest holding at 10 per cent, have risen almost 350 per cent this year. Invitae Corp and Square Inc are the next two biggest, at 7.3 per cent and 6.6 per cent, respectively.

"ARKK has been a top performing fund this year and in the last few years," said Linda Zhang, chief executive officer of Purview Investments. "Such achievement is not coincidental." She attributes the success to Ms Wood's trailblazing work in thematic investing, with a team of young and diverse talent.

BLOOMBERG