Cathie Wood Innovates with New ETFs to Safeguard Against Losses

Cathie Wood’s Ark Investment Management files proposals for four new exchange-traded funds to protect against potential losses in flagship ARK Innovation fund. These ETFs represent Ark’s entry into the buffer ETF market, popular among investors seeking protection in volatile markets. Each fund will operate on a 12-month schedule starting in January, April, July, and October.

The new funds aim to limit a drop in share price to 50% in the ARK Innovation ETF, with gains passed on only if the ETF rises more than about 5%. This move comes amid market volatility due to President Trump’s tariff war, expected to benefit the fund’s holdings. ARK’s top holdings include Tesla, Coinbase, and Robinhood.

The ARK Innovation fund has shown a 24% increase since the beginning of the year, in contrast to the S&P 500 index’s 6% rise. These new ETFs seek to provide a cushion against potential losses while still allowing for gains in the fund’s holdings. Investors are increasingly turning to buffer ETFs for protection in uncertain markets.

Read more at Yahoo Finance: Cathie Wood’s Ark files for new ETFs to limit losses in flagship fund