Cathie Wood's ARK Innovation ETF underperforming compared to market indexes like S&P 500

From Yahoo Finance: 2024-06-01 10:00:00

Cathie Wood made waves with impressive returns of 85% in 2017, 35% in 2019, and 149% in 2020 for her ARK Innovation ETF. Despite her initial success, the fund faced a 24% loss in 2021 and a 67% decline in 2022.

Wood’s investments, including Tesla, have underperformed in 2024, with the ETF down 19% year to date. While other market indexes have seen gains, Wood missed out on stocks in AI like Nvidia, impacting the ETF’s performance.

Comparing the market to the Great Depression, Wood tries to explain the ARK Innovation ETF’s poor performance. Alternatives like the Invesco QQQ Trust and Vanguard Growth ETF have outperformed the ARK fund and have lower expense ratios, providing investors with potentially better options.

The Motley Fool Stock Advisor team doesn’t include the Ark ETF Trust – Ark Innovation ETF in their 10 best stocks. With proven track records of success, their picks have historically outperformed the market significantly, making them worth considering for investment.



Read more at Yahoo Finance: As S&P 500 Hits All-Time Highs, Is It Time to Dump Cathie Wood’s Underperforming Ark Innovation ETF?