Cathie Wood's Ark Innovation ETF Has Delivered a Negative 7.5% Annualized Return Over the Past Five Years, While the S&P 500 Gained 11.2% a Year. Does Her High-Conviction Style Still Deserve a Place in Your Portfolio?
The name is highly regarded on Wall Street as well as on Main Street. But the persistent underperformance of most ETFs in the family of funds is understandably raising questions.
Overview
In theory, the fund should have trounced the market during the time frame in question. The Ark Innovation ETF (NYSEMKT: ARKK) is built to capitalize on "disruptive innovation," after all, and there's certainly been plenty of that of late.
Yet, it hasn't happened. Since September of 2021, the S&P 500 (SNPINDEX: ^GSPC) has gained 69.7% (or 81.2% with reinvested dividends), while Ark's Innovation ETF has lost 32.4% of its value. That's annualized growth of 11.2% and -7.5%, respectively.
Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.