Tesla-Dependent ETF Sees Record Inflow After 24 Weeks of Gains

(Bloomberg) -- An exchange-traded fund that is heavily weighted in Tesla Inc. saw a record inflow.

Investors added $124 million to ARK Innovation ETF (ARKK) on Wednesday, according to data compiled by Bloomberg. So far this year, the “disruptive-innovation” fund has received almost $3.1 billion, boosting its total assets to $7.4 billion.

ARKK has surged in popularity since the coronavirus pandemic rattled global markets, as traders seek to bet on companies developing groundbreaking technology. The actively-managed fund led by Cathie Wood has a 77.4% return year-to-date, placing it in the top five best performing equity ETFs, along with two of the firm’s other products that focus on genomics and internet technology.

Tesla, the fund’s largest holding at 10%, has risen almost 350% this year. Invitae Corp. and Square Inc. are the next two biggest, at 7.3% and 6.6%, respectively.

“ARKK has been a top performing fund this year and in the last few years,” said Linda Zhang, chief executive officer of Purview Investments. “Such achievement is not coincidental.” She attributes the success to Wood’s trailblazing work in thematic investing, with a team of young and diverse talent.

Following are the fund’s biggest holdings as of Aug. 19:

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