Although the ark innovation fund (ARKK), which is known for betting on innovative growth stocks, has retreated by as much as 45% this year, many investors have not "fled".

Since the beginning of the year, the prices of financial assets have come under intense pressure against the backdrop of growing expectations of Fed interest rate hikes and shrinking tables. Among them, a large number of technology "growth stocks" because most of their expected earnings occur in the far end, the discount is even greater. Unfortunately, this kind of company is also the kind of company that wooden sister likes most. With the exception of Tesla, Inc., ARK's flagship Ark Innovation ETF (ARKK), the main holdings of Zoom, Roku, Teladoc Health and Coinbase, have all fallen more than 35 per cent so far this year.

As a result, ARK's flagship ETF has performed poorly this year.Since the beginning of the year, ARKK has grossly outperformed the S & P and Nasdaq indices with a pathetic return of-45 per cent.

However, many investors are willing to believe that the magic of the "bull queen" has not gone away, and choose to "follow" in the "trough" of ARKK.。

Investors have invested more than $658 million in ARKK so far this year, with a net purchase of $59 million in nearly a week, according to Factset. By contrast, investors withdrew more than $2.3 billion from 100ETF-Invesco (QQQ), another well-known fund that invests heavily in technology stocks, over the same period.

And Cathie Wood, the CEO of ARK, continues to inject confidence into ARKK investors. At a webinar this week, she said:

"We really believe that our portfolio is full of the next Tesla, Inc. and the next Bitcoin."

On the other hand, analysts' doubts about Cathie Wood's aggressive investment strategy are also growing. At the end of March, Morningstar analyst Robby Greengold criticized wooden Sister for "intuitive investment", saying that there were problems with everything from risk management to investment strategy to succession planning.

Fu Peng, chief economist of Northeast Securities, has succinctly summed up the "subversive innovation" portfolio characteristics such as ARKK:At this stage, it uses the logic of the primary market venture capital in the secondary market. In addition to the selection vision of the asset side, a large part of its advantage is lower than the liability.

Similarly, Don Calcagni, chief investment officer of Mercer Advisors, which manages $40 billion, also saidAs interest rates rise, investors may want to gradually exit innovative ETF and similar funds and shift their portfolios to value stocks.Even if investment in innovative technology companies will eventually benefit a lot after a long time, the big swings in between are hard for many investors to bear. He added:

"you also have to be a very disciplined investor to invest in the most speculative equity assets on the market. For a portfolio like ARKK, you may have to buy it for at least 10 years, but the challenge is that most investors can't resist looking at their portfolios. "