- ARK Invest's ARK Innovation ETF (ARKK) had a stellar 2020, delivering a 150% return and luring in more than $10 billion in fresh investor allocations during the year.
- Yet even while everything seemed to be coming up ARKK, a few analysts cautioned that the flood of inflows was, ironically, making ARKK's already unusually illiquid portfolio even less liquid.
- 2021 has not gone well for ARKK so far, as the skeptics' warning that its illiquidity made it vulnerable to market reversals has been borne out.
- ARK Invest's Cathie Wood has endeavored to support the flagging prices of ARKK's illiquid positions, but this has accomplished little besides further magnifying the ETF's already dangerous illiquidity.
- ARKK has already fallen more than 30% from the all-time high it set last month; it may get even worse.
For further details see:
No One's ARKK: ARK Innovation ETF Offers No Shelter From A Stormy Stock Market