Cathie Woods' Ark Fintech wipes out gains
Cathie Woods' Ark Fintech Innovation ETF is down roughly 15% since its inception. The fund has lost all of its gains as its major holdings — including Coinbase — tumbled in trading this week.
Why it matters: Investors would've been better off at this point betting on the S&P 500, which is up about 46.8% since the Ark Fintech ETF's creation in February 2019.
Details: The Ark Fintech ETF's stocks include a mix of fintech and e-commerce companies, with Block, Coinbase, Shopify, Twilio, Robinhood and MercadoLibre among its major holdings.
- Notably, Coinbase on Tuesday posted earnings that missed estimates, and its stock has plunged since.
Bottom line: Fintech needs to show either a path to profitability or growth to keep investor confidence. Right now, the sector is struggling to do either.