- Ark Invest's flagship ETF has suffered a year-to-date decline of 24% as investors shy away from unprofitable tech companies.
- Despite the decline, Cathie Wood has reiterated her view that innovation stocks are in value territory.
- These are the 10 most beaten-down stocks in Ark Invest's flagship Disruptive Innovation ETF.
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Investors in Ark Invest's flagship portfolio have endured a tough 2021, with Cathie Wood's ETF down 24% year to date while the S&P 500 is up about 23%.
The reversal in the once-hot ETF has occurred amid a rotation out of high-growth tech stocks that are often unprofitable, in favor of more stable companies that have a proven history of delivering profits despite economic uncertainty.
Now, what was once incredibly strong positive momentum for the tech trade has reversed to consistent negative momentum, leading to a nosedive of more than 80% from record highs. The sell-off has been compounded by the Federal Reserve's recent decision to speed up the tapering of its monthly bond purchases, as well as its guidance for multiple interest rate hikes in 2022.
But Wood is staying bullish on her investment strategy of buying innovative companies with little to no profits. In a blog post on Friday, Wood said the stocks ARK Invest owns are now in "deep value territory" and predicted monster annualized returns of 40% over the next five years.
These are the 10 most beaten-down stocks in Ark Invest's flagship Disruptive Innovation ETF as of December 20. All data was sourced from Koyfin.
10. 2U, Inc
Ticker: TWOU
% Below 52-Week High: -66%
Market Capitalization: $1.6 billion
9. Signify Health
Ticker: SGFY
% Below 52-Week High: -66%
Market Capitalization: $3.2 billion
8. Teladoc Health
Ticker: TDOC
% Below 52-Week High: -69%
Market Capitalization: $15.3 billion
7. Editas Medicine
Ticker: EDIT
% Below 52-Week High: -70%
Market Capitalization: $2.0 billion
6. Compugen
Ticker: CGEN
% Below 52-Week High: -71%
Market Capitalization: $380.0 million
5. Materialise
Ticker: MTLS
% Below 52-Week High: -72%
Market Capitalization: $1.4 billion
4. Invitae
Ticker: NVTA
% Below 52-Week High: $3.8 billion
Market Capitalization: -72%
3. Robinhood Markets
Ticker: HOOD
% Below 52-Week High: -79%
Market Capitalization: $15.2 billion
2. Skillz Inc.
Ticker: SKLZ
% Below 52-Week High: -83%
Market Capitalization: $3.2 billion
1. Berkeley Lights
Ticker: BLI
% Below 52-Week High: -83%
Market Capitalization: $1.3 billion
