Cathie Wood’s flagship exchange traded fund peaked on February 16, last year. One year and a 53 per cent drop later, there could still be plenty of pain ahead for her beloved disruptive-tech chasing strategy.

The ARK Innovation ETF (ticker ARKK) has stabilised since a precipitous decline last month – it’s roughly flat in February – but the headwinds facing its speculative growth picks are only growing. Not only are yields rising as investors prepare for the US Federal Reserve to raise interest rates – bad news for unprofitable companies – but the economic reopening is hammering many of the businesses that thrived in the pandemic.

Bloomberg