Cathie Wood’s Ark Innovation ETF lags S&P 500 in 2025 despite strong 2020 gains and recent momentum plays.
Ark Investment Management initiated a $52 million position in a tech stock that surged over 40% in the past month. The move reflects Cathie Wood’s strategy of capitalizing on momentum, though her flagship Ark Innovation ETF trails broader markets this year.
The Ark Innovation ETF (ARKK) rose 2.98% in 2025, underperforming the S&P 500’s 9.57% gain. Despite a 35.49% return in 2024, the fund’s five-year annualized return stands at -7.42%, compared to the S&P 500’s 12.48%.
Wood’s focus on high-growth tech sectors like AI and robotics has led to volatility, including a 60% drop in 2022. Two Ark ETFs ranked among the worst-performing funds in Q1 2026, according to Morningstar data.