Cathie Wood's Ark Has Delivered Just a 13.8% Annualized Return Since 2014, Roughly Matching the S&P 500. Should You Trust Her Bold Predictions for 2030?
Cathie Wood and Ark Invest have set some big targets for 2030. How should investors view them?
Overview
Cathie Wood is the founder, chief investment officer, and chief executive officer of Ark Invest, an investment firm that manages growth-focused exchange-traded funds (ETFs). Wood has built a reputation as a highly forward-looking investor, and she and her team tend to structure their investments around potentially revolutionary developments in categories such as computing hardware, software, fintech, biotech, and space. Along with structuring ETFs around potentially explosive growth bets, Wood also regularly weighs in with forecasts, valuation targets, and scenarios for the future.
On the other hand, the annualized return of roughly 13.8% for her company's flagship Ark Innovation ETF (NYSEMKT: ARKK) since its launch in October 2014 has only roughly matched the S&P 500's average annualized return over the same period. With the Ark Innovation ETF failing to meaningfully outperform the benchmark index since its founding, should investors still trust Wood and Ark's big forecasts for 2030?
Ark Invest's Cathie Wood. Image source: Getty Images.
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Originally published at www.fool.com.