Cathie Wood's ARK will shut down its Transparency ETF just 7 months after it launched
ARK Investwill shut down its transparency-themed ETFin its first ever fund closure, according to a filing.
- The Transparency fund (CTRU) aimed to invest in companies committed to openness and accountability.
It marks the first time the asset management company has closed down one of its ETFs.
The ETF, which traded under the ticker CTRU, aimed to invest in companies that were the "most transparent" which it defines as "openness, communication, accountability and trust," with holdings in Teladoc Health, Spotify,
"While ARK investigated alternative index providers, it did not find a suitable solution and decided to close the Fund effective July 26, 2022, or as soon as practical thereafter," ARK Invest said.
In a regulatory filing, the company said the board unanimously approved the liquidation and termination of the fund earlier this month. It will no longer accept creation order post Thursday and won't accept redemption orders after July 26.
CTRU, which launched last December, has lagged behind the broader market, having lost 40% in value since its inception and 36% year-to-date.
ARK Invest did not immediately respond to Insider's request for comment.
Wood's firm has endured turbulence this year with its flagship innovation-focused fund, ARKK, down nearly 70% year-to-date as investors pivot away from growth stocks. The fund has deteriorated largely thanks to the
At the same time however, her collection of nine ETFs has reeled in $167 million of inflows in 2022, suggesting that investors aren't in any hurry to ditch Wood and her suite of funds.
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