Cathie Wood’s Biotech Bets Drive Ark Innovation ETF to Record
(Bloomberg) -- Cathie Wood’s bets on biotech companies developing drugs using gene-editing technology is proving timely even as Tesla Inc. and global equity markets stumble Monday.
Eye-popping gains for drug developers which use Crispr/Cas9 genetic scissors to develop experimental therapies helped lead Wood’s wildly popular Ark Innovation ETF (ARKK) to rise as much as 4.3% to a record. The strength stood out amid a choppy session for the market and as Tesla, ARKK’s biggest holding, sank as much as 6.3%.
The ETF’s gains were primarily fueled by a trio of gene-editing focused stocks -- Editas Medicine Inc., Crispr Therapeutics AG and Intellia Therapeutics Inc. -- which all surged between 19% and 47% to record highs. The three stocks were among the Nasdaq Biotechnology Index’s top five performers on Monday, even as the broader industry was little changed.
The $17.8 billion ETF has climbed 168% this year, more than 10 times the S&P 500 Index’s return. While Tesla’s more than 680% gain makes the electric car maker the top performer, at least three health stocks are also in its top 10 performers this year.
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