https://finance.yahoo.com/quote/NNDM/
And FNCMX is relatively small with only $11B in assets. So if you want us to take your argument seriously you'll have to provide a better example.
Uh... KOMP is the 3rd largest holder of NNDM and a passive fund. But regardless, whether these are passive/active is besides the point. Which is that most investment activity nowadays happen through vehicles that act as a basket of equities, and because of this, some of this money ends up flowing into bad equities given the vast majority of them don't trade on any sound fundamentals. I mean ARK surely doesn't, despite being actively managed.
Conversely, look at super undervalued companies like JKS and CSIQ. JKS is the largest and fastest growing solar company in the world BTW. Yet these companies sit mostly under foreign market ETFs which have never been very popular, and hence why they largely remain undervalued.
ARKK are active investors because they're using discretion to pick specific investments.
They say so themselves: "ARKK is an actively managed ETF"
ARKK has been buying NNDM, yes, but:
- they're not passive. they're active.
- they only own 5% of the stock. almost any public stock will have at least 5% owned by some fund, so it's not notable and doesn't disprove the notion that it's retail driven.
- ARKK are known to pile into retail frenzy stocks, so that correlation is going to exist often.
[1] https://www.nasdaq.com/market-activity/stocks/nndm/instituti...
