'ARK ETF Trust, which runs the popular ARK Innovation ETF (ARKK), has wiped out $14.3 billion in investors' wealth over the past 10 years, says a new analysis from Morningstar. That ranks it as the No. 1 wealth destroying fund family in that time. ARK has vaporized twice the value of No. 2, KraneShares, Morningstar says.'
Wealth destruction depends on fund performance since inception but also crucially on the timing of inflows and outflows, which is determined by investors rather than fund managers.
While this is true, ARKK has managed to miss whole tech boom it was supposed to catch.
ARKK lost to SP500 over it's existence (2014 - 2024). And all this when not taking into account dividends that are very small for ARKK invested companies relative to SP500.
Compared to simple NASDAQ index fund ARKK is over 100% behind.
Wealth destruction depends on fund performance since inception but also crucially on the timing of inflows and outflows, which is determined by investors rather than fund managers.