Ark Innovation ETF (ARKK) the flagship fund of renowned investor Cathie Wood’s Ark Investment Management, is finally beginning to pay a price for its underperformance.
Ark funds have plummeted in recent months as their technology stocks suffered from weak gains. Wood has defended herself by noting that she has a five-year investment horizon.
And Ark Innovation ETF’s five-year track record could indeed offer investors comfort until May 9. The fund’s five-year return has surpassed that of the S&P 500 to date. But Ark Innovation’s five-year annualized return was just 6.01% through September 1, well behind the S&P 500’s 11.85% return.