ARK Innovation ETF in 2024: Is it Worth the Investment?
As a cryptocurrency investor, you may be wondering if investing in ARK Innovation ETF at the beginning of 2024 would have been a wise choice. Let’s delve into the performance of this ETF and analyze whether it would have yielded favorable returns for you.
The Return on a 2024 ARKK Investment
When looking at the performance of ARKK throughout the first half of 2024, it is evident that the fund has experienced significant volatility, ultimately resulting in a substantial decline. Starting the year at $51.8 and currently standing at $43.37, ARKK is down by 16.27% year-to-date (YTD).
– Investment made on January 2, 2024, would have bought 19.3 shares
* These shares would be worth $837.26 as of June 21, indicating a loss of nearly $163
The Reasons Behind ARKK’s Decline
Understanding why ARK Innovation ETF has been performing poorly in the first half of 2024 requires a closer look at its largest holdings. Interestingly, despite the broader market’s positive performance, ARKK has struggled due to the following reasons:
– * Tesla Motors (NASDAQ: TSLA) has been struggling for almost a year, remaining 26.91% in the red YTD
– * Roku Inc. (NASDAQ: ROKU) down by 39.70% since the beginning of the year
– Second-biggest holding, Coinbase (NASDAQ: COIN), rose 49.82% thanks to the crypto market rally
– Absence of AI companies in top holdings, with only Palantir (NASDAQ: PLTR) making the list
Hot Take: Making Informed Investment Decisions
When considering investments in ETFs like ARK Innovation ETF, it is crucial to conduct thorough research and analysis to make informed decisions. Understanding the performance of the fund’s holdings and keeping a close eye on market trends can help you navigate the complexities of the crypto market and maximize your returns.
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