Cathie Wood Receives Harsh Criticism from Morningstar, Labeled as the Worst 'Wealth Destroyer
By April Fowell
According to a recent Morningstar investigation, the ARK ETF Trust, which manages the well-known ARK Innovation ETF (ARKK), has wiped out $14.3 billion in investor capital during the last ten years. This places them as the top fund family at that period for destroying money. ARK has dropped to double the value of No. 2 KraneShares.
It hurts to lose this much money on an ETF. During this time, additional mutual funds and ETFs generated $11.1 trillion in value. ARK is also having a difficult start to the year.
What is impairing the performance of the ARK family? ARK Innovation Fund is the major focus. According to Morningstar, the $9.3 billion assets in the exchange-traded fund (ETF) alone wiped out $7.1 billion in investor capital in the ten years ending in December 2023.
As a result, ARK Innovation is ranked as the third worst value destroyer. And take this. An annual charge of 0.75% was paid by investors for this privilege. ProShares UltraPro Short QQQ (SQQQ) is the largest individual fund wealth killer, using leverage to gamble against the Nasdaq 100's surge. Investors are aware that this ETF is not suitable for long-term holding, nevertheless.
That being said, it's not the only failing ARK fund. In ten years, the ARK Genomic Revolution ETF (ARKG) destroyed $4.2 billion in worth. It is therefore the fifth-worst fund.
ARK Innovation is having a difficult start to the year. This year, the well-known ETF has lost 12.1%, according to Morningstar Direct. Meanwhile, the S&P 500 has increased by almost 3%. This year's second-worst U.S. diversified ETF is ARK Innovation.
Large-cap growth and momentum companies are gaining ground in the interim.
Cathie Wood Stocks Worth Investing
Cathie Wood has exceptional research and insightful knowledge of next-generation technology. She has an excellent eye for identifying trends that are disruptive and the businesses that can capitalize on them.
Leader in the field of gene-based medicine is CRISPR Therapeutics. With Casgevy, the business just achieved FDA clearance for the first CRISPR/Cas9 gene-edited medication, making history.
For patients 12 years of age and older, Casgevy is licensed by the FDA to treat transfusion-dependent beta-thalassemia as well as severe sickle cell disease. Wall Street analysts predict that the treatment will surpass $2.2 billion in revenues at its peak somewhere around 2030, despite the possibility that logistical challenges may cause a delayed ramp-up.
Several of the cutting-edge treatments in CRISPR Therapeutics' robust pipeline target illnesses that have the potential to be blockbuster hits. For a business that, as of this writing, has a market valuation of about $5 billion, that is a fantastic value offer.
Roblox is a startup that lets people create and play games in a 3D virtual environment. Roblox announced a 20% increase in average daily active users, a 20% increase in hours engaged, and a 38% year-over-year revenue jump in the most recent quarter. These astounding numbers show that Roblox is a viable and inventive platform rather than just a fleeting craze.