Is Cathie Wood's Flagship Innovation Fund a Buy After Falling 68%?
Famous investor Cathie Wood's flagship ARK Innovation ETF (NYSEMKT: ARKK) has struggled since interest rate hikes poured cold water on a hot stock market in early 2022. The fund has mostly stagnated since midway through 2022, while the Nasdaq Composite has reached new highs.
Down 68%, is this exchange-traded fund worth buying today? Despite Cathie Wood's sterling career and Wall Street reputation, investors may want to pause before investing their money in the ARK Innovation ETF. There are some simple truths about actively managed funds and, possibly, a better alternative.
This isn't a knock on Cathie Wood, ARK Invest, or the ARK Innovation ETF. But the simple truth is that actively managed funds have a tough time outperforming indexes over the long run. Below, you can see how Wood's fund thrived in a low-rate environment that was friendly to growth stocks.
Source Fool.com
