While the wheels are in the midst of coming off of her "flagship" ARKK Innovation Fund, Cathie Wood is apparently readying her latest new venture for launch: yet another fund.
Wood is working on launching the ARK Transparency ETF (ticker CTRU), which will launch Wednesday of this week and mark Wood's 9th ETF and the third to track an index, according to Yahoo.
The launch comes while Wood's flagship fund, as many have pointed out, is falling behind major index benchmarks at a dizzying rate, despite the success of Tesla over the last year.
ARKK just had its worst week since February, according to Yahoo, falling about 12% in the last 5 trading days.
CTRU has set the goal of tapping into investor appetite for ESG investments. The fund will follow an index that excludes alcohol, banking, gambling and oil and gas, the report said.
Todd Rosenbluth, head of ETF and mutual fund research at CFRA said of the new launch: “Sentiment toward ARK has started to shift as thematic funds like ARKK and siblings have struggled to repeat its performance success in 2021. We expect the ETF to still garner some interest as ARK still has a strong ETF brand and it provides exposure to a new approach that could complement ARKK.”
We noted back in September that despite the supposed focus on virtue signaling (we're guessing that's why Wood is excluding gambling and oil and gas), Wood still has massive exposure to names like DraftKings elsewhere and will be including companies like Apple and Nike - notorious for their labor practices - in the latest ETF offering.
The inclusion of these names hasn't stopped Wood from trying to position this ETF as some type of pious pathway into the world of investing.
Friend of Zero Hedge and Bloomberg ETF expert Eric Balchunas said earlier this year: “This is kind of Ark’s version of ESG. It’s intriguing because it doesn’t have a moralizing vibe to it, it’s like they’re saying if you go after transparency, you’re probably going to buy good companies.”
The question of Wood is spreading herself too thin could start to come up if her funds can't continue to perform. This ETF marks the second ETF launch for ARK this year, despite the firm's "flagship" ARKK fund getting walloped by 11% over the last week and underperforming the S&P by more than 30% this year.
"An index-based ESG ETF doesn’t necessarily scream ‘disruptive innovation,’ which ARK has branded themselves around,” Nate Geraci, president of the ETF Store, said back in September.
And of course, what would the launch of a new ETF be without the TV appearances to go with it? Expect to see Wood taking every opportunity to shill her latest "actively managed" product on Bloomberg and CNBC in coming weeks. We'll have the "mute" button ready...
Tue, 12/07/2021 - 09:40