Cathie Wood’s Biotech Bets Drive Ark Innovation ETF to Record
(Bloomberg) - Cathie Woods' bets on biotech companies developing drugs using gene editing technology are proving timely, even if Tesla Inc. and global stock markets stumble on Monday.
The staggering profits for drug developers using Crispr / Cas9 gene scissors to develop experimental therapies have helped Wood's hugely popular Ark Innovation ETF (ARKK) rise by as much as 4.3% to a record high. The strength stood out during a choppy market session and when Tesla, ARKK's largest holding, dropped as much as 6.3%.
The ETF's profits were primarily driven by three stocks with a focus on gene editing - Editas Medicine Inc., Crispr Therapeutics AG, and Intellia Therapeutics Inc. - all of which rose between 19% and 47% to hit record highs. The three stocks were among the top five performers on the Nasdaq Biotechnology Index on Monday, even if the broader industry has hardly changed.
The $ 17.8 billion ETF is up 168% this year, more than ten times the return on the S&P 500 Index. While Tesla's growth of more than 680% makes the electric car manufacturer a top performer, at least three health stocks are among the top 10 performers this year.
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