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Cathie Wooden’s

ARK Innovation ETF
has been on the rise following the announcement that the

Nasdaq 100
will rebalance the weightings of its constituents.

On July 7, Nasdaq announced that the

Nasdaq 100
index will likely be present process a “Particular Rebalance” earlier than the market opens on July 24. This rebalance is supposed to handle “overconcentration within the index” following main positive factors of the “big seven” megacap tech shares, together with

Apple

(AAPL) and

Microsoft

(MSFT).

ARK Innovation (ticker: ARKK) is usually made up of smaller, unprofitable tech shares, together with

Coinbase Global

(COIN),

Roku

(ROKU), and

DraftKings

(DKNG). The one two shares in ARK Innovation which might be part of the massive seven megacap names are

Tesla

(TSLA), which holds probably the most weight within the ETF, and

Meta Platforms

(META).

These large-cap tech shares have surged this year as traders have purchased up shares of corporations with publicity to artificial intelligence.

With the rebalancing of the Nasdaq 100, indexers must sell some of their holdings within the largest-cap shares, and add to their positions in smaller-cap names. Shares of Apple have been down 0.3% Tuesday whereas Microsoft dropped 1% and Tesla declined 0.2%. Parts of ARK Innovation have been buying and selling larger, serving to Wooden’s portfolio.

Zoom Video Communications

(ZM) gained 2.2%,

Block

(SQ) rose 2.8%, and

UiPath

(PATH) was 3.5% larger.

ARK Innovation had risen 1.2% on Tuesday to $45.90, and was on tempo for its highest shut since August 2022, in line with Dow Jones Market Knowledge. The ETF was up for 3 consecutive days, or 6.2% over this era.

Write to Angela Palumbo at angela.palumbo@dowjones.com