{"id":5255,"date":"2026-06-25T15:16:00","date_gmt":"2026-06-25T15:16:00","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5255"},"modified":"2026-06-25T15:16:00","modified_gmt":"2026-06-25T15:16:00","slug":"whats-the-point-of-investing-in-cathie-woods-arkk-etf-anyway","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5255","title":{"rendered":"What\u2019s the point of investing in Cathie Wood\u2019s ARKK ETF anyway?"},"content":{"rendered":"
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Cathie Wood\u2019s Ark Innovation Fund (ARKK) ETF stock has remained inside a narrow range in the past few months. ARKK has remained between the support and resistance levels at $72.68 and $82.35 since April. It has risen by 9% in the last 12 months, while the Nasdaq 100 Index has soared by 28%. <\/p>\n

ARKK has dropped by 1.82% this year, while the index has jumped by 15.90%, meaning that it is not participating in the ongoing artificial intelligence (AI) boom. <\/p>\n

So, with the ongoing underperformance, what is the need for paying a hefty fee of 0.75% for a fund that continues to underperform the broader market, considering that the Vanguard S&P 500 ETF (VOO) charges just 0.03%?<\/p>\n

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ARKK ETF vs QQQ YTD performance | Source: TradingView<\/em><\/p>\n

ARKK ETF has underperformed as key companies have slipped<\/h2>\n

The Ark Innovation Fund stock has underperformed the broader market this year. Tesla, the biggest constituent company, has dropped<\/a> to $375, from the all-time high of $500 as the company faces some major challenges. <\/p>\n

Valuation concerns remain, with the company trading at a forward price-to-earnings ratio of 185. It is also facing substantial competition pressure from the likes of Nio, BYD, XPeng, and Li Auto.<\/p>\n

Tempus AI, the second-biggest constituent company, has dropped by over 50% from its highest level last year, while CRISPR Therapeutics (CRSP) has plunged by 32% in the same period. <\/p>\n

Robinhood stock has dropped by 36%, while Shopify has slumped by 35% from its highest point last year. SpaceX, which went public recently, has crashed by over 30% from its all-time high and the downtrend is continuing. <\/p>\n

Other top companies in the ARKK ETF, like Coinbase, Circle Internet, Roblox, Palantir, and CoreWeave, have all slumped from their highest points last year. <\/p>\n

Coinbase and Circle have dropped because of the ongoing crypto market sell-off that has affected Bitcoin and most altcoins. COIN\u2019s volume has continued falling, while the USDC market capitalization has dropped from a record high of $80 billion to $74 billion today. <\/p>\n

Ark Innovative ETF lacks an edge vs peers<\/h2>\n

ARKK has a long history of underperforming the benchmark ETFs. For example, it has dropped by 35% in the last five years, while the Nasdaq 100 Index has jumped by 103%. In other words, $10,000 invested in this fund would now be worth $6,500. A similar amount invested in the Nasdaq 100 Index would be worth $20,300 today, excluding dividends. <\/p>\n

To be clear: ARKK ETF regularly outperforms the Nasdaq 100, especially when Tesla is in a strong rally. However, in the long-term, history suggests that it always lags behind the broader market. ARKK has jumped by 275% since its inception, while the Nasdaq 100 has jumped by 600% in the same period. <\/p>\n

The other main risk to remember is that ARKK is not a cheap fund as it has an expense ratio of 0.75%, meaning that a $10,000 investment will cost you $75 a year. A similar amount invested in VOO and QQQM will cost you just $3 and $15 a year. These fees will always add up over time.<\/p>\n

This means that ARKK\u2019s investors are paying a hefty fee to underperform the market. This is also further evidence that active ETFs rarely beat passive ones. Data compiled by S&P Global shows that<\/a> 90% of all active funds have underperformed the S&P 500 Index in the past 15 years. <\/p>\n

The post What\u2019s the point of investing in Cathie Wood\u2019s ARKK ETF anyway?<\/a> appeared first on Invezz<\/a><\/p>\n

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Cathie Wood\u2019s Ark Innovation Fund (ARKK) ETF stock has remained inside a narrow range in the past few months. ARKK has remained between the support and resistance levels at $72.68 and $82.35 since April. It has risen by 9% in the last 12 months, while the Nasdaq 100 Index has soared by 28%. ARKK has dropped…<\/p>\n","protected":false},"author":1,"featured_media":5256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5255"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5255\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5256"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}