Moonshot Innovators ETF Comes Back To Earth With A Bump

Moonshot Innovators ETF Comes Back To Earth With A Bump
Andrew Rummer

about 2 years ago1 min

Mentioned in story

The Direxion Moonshot Innovators exchange traded fund (ticker: MOON) has had a bumpy ride since February as its bets on unprofitable companies with the potential to disrupt existing industries failed to pay off. 

As the chart shows, the Moonshot ETF, which launched in November 2020 and rapidly took in more than $300 million in investor cash, is down 4% so far this year. The benchmark S&P 500 of blue chip US stocks has climbed 24% in the same period. 

After 2020 produced an astounding 149% surge for Ark Investment Management’s flagship Ark Innovation actively managed ETF (ticker: ARKK), the ETF market saw a rush of copycat “innovation” funds seeking to tap into investors’ renewed love for disruptive tech stocks. 

BlackRock, for example, launched its Future Innovators ETF (ticker: BFTR) in October 2020 and Goldman Sachs followed a month later with its Innovate Equity ETF (ticker: GINN). The BlackRock fund is up just 0.7% in 2021 and the Goldman fund has climbed 12%. ARKK is down 14%. 

With the Moonshot ETF suffering outflows for eight straight months, it appears investors are – for now – falling out of love with the innovation theme.

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