From inception, the fund’s net asset value has still grown to US$45.59 on Friday from US$20.12 in the last week of Oct. 2014 when it launched – a gain of about 127% – according to figures from the company’s website. But the S&P 500 had a total return of 136% over the same period, according to data compiled by Bloomberg.
The outsized gain that turned Cathie Wood into one of the world’s most famous proponents of active fund management is quickly evaporating as some of her favourite stock picks tumble.
After years of trouncing the market and just days after Wood issued a broadside against passive investing, her flagship ARK Innovation ETF now looks set to give up all the outperformance it once enjoyed against the S&P 500 Index. Wood’s strategy of picking stocks involved in “disruptive innovation” has fallen victim to the tech meltdown as investors flee high-priced growth shares in an environment of rising interest rates and high inflation.
