---
title: "ARK Innovation ETF Sell-Off Deepens as Outflows Accelerate"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294615316.md"
description: "The ARK Innovation ETF (ARKK) faces deepening sell-offs, with July net outflows exceeding $123 million and over $6.7 billion withdrawn in five years. Assets under management have plummeted to $6.5 billion from a 2021 peak of $50 billion. The fund is down 55% from its all-time high, lagging behind broader indices like the S&P 500. High fees (0.75%) and significant declines in top holdings such as Tesla, SpaceX, and Tempus AI contribute to investor exodus."
datetime: "2026-08-02T19:50:26.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294615316.md)
  - [en](https://longbridge.com/en/news/294615316.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294615316.md)
generator: "portal-rs"
---

# ARK Innovation ETF Sell-Off Deepens as Outflows Accelerate

**Cathie Wood**’s flagship fund, the **ARK Innovation ETF** (CBOE: ARKK), remains under pressure as both its performance and investor demand continue to weaken. The ETF has fallen to its lowest level in three months and is down 15.5% from its year-to-date high, weighed down by the continued decline in many of its largest holdings.

## ARKK ETF Outflows are Rising

Wood is continuing to lose investor support as outflows from her flagship ETF accelerate. According to ETFDB data, the fund recorded more than $123 million in net outflows in July alone. Over the past 12 months, investors have withdrawn more than $1.49 billion, while cumulative net outflows over the last five years have climbed to $6.7 billion.

![ARKK inflows and outflows](https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/08/02135009/ARKK-Outflows-1024x807.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

*ARKK ETF inflows and outflows | Source: ETF Db*

As a result, the fund now holds just $6.5 billion in assets under management (AUM), down from over $50 billion at its peak in 2021. This retreat happened because of its outflows and its performance. It has dropped by over 55% from its all-time high, making it one of the top laggards. In contrast, ETFs tracking the S&P 500 and Nasdaq 100 indices jumped to a record high.

 **Read Also: Cyber Stocks Jump as CrowdStrike, Palo Alto Networks Ride AI Agent Hack Fears** 

Beyond its weak performance, investors are also likely deterred by ARKK’s relatively high fees. Despite consistently lagging the broader market, the fund still charges a 0.75% expense ratio. By comparison, the **Vanguard S&P 500 ETF** (NYSE:VOO) has an expense ratio of just 0.03%, while the **SPDR Portfolio S&P 500 ETF** (NYSE:SPLG) charges only 0.02%.

## Top ARKK Stocks Have Dived This Year

Looking at its top constituents, most of its companies have dropped substantially in the past few months. **Tesla** (NASDAQ:TSLA) dropped by over 37% from its highest point in December. This sell-off continued after its recent earnings,which showed that its gross margin narrowed, while its free cash flow turned negative. 

**SpaceX** (NASDAQ:SPCX), the second biggest name in the fund, has also dropped to a record low a month after its highly anticipated IPO. This sell-off may take a breather this week after its earnings on Tuesday.

**Tempus AI** (NASDAQ:TEM), another top company in the fund, has also plunged by 58% from its peak last year. This retreat is mostly because of the ongoing software sell-off, valuation concerns, and its recent Personalis buyout. 

Other top companies in the ARKK ETF, like Coinbase, Shopify, Circle Internet Group, and Robinhood, have all plunged by double digits this year. Robinhood and Coinbase stocks dropped after their recent earnings showed the impact of the ongoing crypto market sell-off.

 **Read Also: Goldman Sachs' GPIX, GPIQ Beat JPMorgan's JEPI, JEPQ in Key Metrics** 

*Image: Shutterstock*

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## Related News & Research

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- [Andrew Polovin Sells 22,148 Shares of Tempus AI (NASDAQ:TEM) Stock](https://longbridge.com/en/news/296610788.md)
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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**