Direxion Moonshot Innovators ETF, ticker “MOON,” has risen 39% this year, more than ARK Innovation ETF’s 3.5% gain, according to Bloomberg. MOON’s growth has been linked to its heavier weight to biotech companies and less on straight technology and internet firms.
Cathie Wood’s flagship fund, ARKK, became one of the top-performing exchange-traded funds in the past year due to big bets on tech firms.
Wood’s funds, especially ARKK, have faced turbulence recently as valuation fears caused by rising yields hit tech stocks.
MOON’s largest sector allocation, biotech, makes up 17% of the fund compared with ARKK’s biggest stake of 22% in internet companies.
Despite MOON’s gain, it poses less threat to ARKK, which has returned more than 200% in the past 12 months and spurred a loyal following Wood around.
ARKK’s gain of more than $7 billion this year has put its total value above $24 billion.
MOON has gained roughly 70% since it was launched in November but has attracted only about $220 million in assets.
