As ARKK drops 20% so far this year, Cathie Wood's fund is wiping out its outperformance versus the S&P 500
With another 1.5% drop on Tuesday, the tech-heavy $ARK Innovation ETF(ARKK.US$ is closer to wiping out its famous outperformance versus the $S&P 500 Index(.SPX.US$ that helped propel Cathie Wood to Wall Street superstardom.
As rising yields hammer expensive-looking growth companies with shaky profit outlooks, the exchange-traded fund beloved by day traders, $ARK Innovation ETF(ARKK.US$, has already plunged 19.92% this year -- down 52% from February's peak.
![ARKK vs. S&P 500 vs. Nasdaq 100 since 2019](https://ussnsimg.moomoo.com/2628773540107333862.png/bigmoo)
Last week Wood, the founder of ARK Investment Management, saw ARKK's returns since 2020 fall below the Nasdaq 100 Index, as the new year tech wreck disproportionately lashed her favored stocks. According to Bloomberg data, assets managed by ARKK, which launched in 2014, now stand at $12.8 billion versus the $28 billion peak last February.
Given the asset manager's preference for high growth, speculative stocks, every single U.S.-listed ARK fund is now down in 2022.
![ARK funds' YTD vs. SPX YTD as of 1/20/2022](https://ussnsimg.moomoo.com/5383488992022990580.png/bigmoo)
On the other hand, anti-ARK ETF $Tradr Short Innovation Daily ETF(SARK.US$ went up over 20% so far in 2022, which had a 50% return since its debuts in November.
![SARK vs. ARKK since last Nov.](https://ussnsimg.moomoo.com/5567345855898392104.png/bigmoo)
Amid the turmoil, Wood's mantra is that ARK invests with a minimum five-year time horizon, and that volatility is to be expected in the industry-disrupting and cutting-edge stocks it targets.
On Wednesday morning, she tweeted about the "enormous" arbitrage opportunity in the disparity of valuations between private and public markets for innovative companies.
![As ARKK drops 20% so far this year, Cathie Wood's fund is wiping out its outperformance versus the S&P 500](https://ussnsimg.moomoo.com/522523308650794064.png/bigmoo)
Are you a fan of Cathie Wood? Would you invest in ARK funds or SARK this year?
Source: Bloomberg, Twitter
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VIKING808 : I mean it's not like an inverse ARK invest ETF shorts everything Kathy Woods touches came out and became hugely popular in the last couple months or anything like that right?
oh wait...
VIKING808 : I mean it's not like an inverse ARK invest ETF that shorts everything Kathy Woods touches came out and became hugely popular in the last couple months or anything like that right?
oh wait...
Mooon Trader : ok
Mr Trecherous : Never trust a chick named Cathie![undefined undefined](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined undefined](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
allen kidd : I've lost money listening to her last year, that's when I stopped following her.![undefined undefined](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
Cathie isn't a bad name tho Mr. T
ETF HubOP allen kidd: if you lost faith in her, maybe you can take a look at $Tradr Short Innovation Daily ETF (SARK.US)$![undefined undefined](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)