wsj.com/amp/articles/cathie-wood-ark-innovation-performance-11642175833
Cathie Wood became a superstar in 2020 after her ARK exchange-traded funds earned some of the highest returns in history. So far this year, ARK Innovation, the largest of Ms. Wood’s ETFs, is down more than 15%. The fund is the latest example of what happens when a fund becomes too large for its own good.

So far this year, ARK Innovation, the largest of Ms. Wood’s ETFs, is down more than 15%. Over the past 12 months, it has underperformed Invesco QQQ Trust, which tracks the technology-dominated Nasdaq-100 index.

ETFs can get too big too fast, and nobody can stop it. It's a lot easier to rack up giant gains with a small fund than with a big one. A mutual fund can mitigate this problem by closing to new investors, shutting off the inflow of cash.

Unlike mutual funds, however, ETFs generally don’t close to new investors. The ability to issue shares continuously is what keeps the price of an ETF trading in line with the value of its holdings. So ETFs almost never limit their own growth. In my opinion, not nearly enough mutual funds have closed to new Investors.
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