How a Flood of Money Swamped Cathie Wood’s ARK

Fund manager 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%. Over the past 12 months, it has underperformed Invesco QQQ Trust, which tracks the technology-dominated Nasdaq-100 index, by a startling 65 percentage points.

What’s happened at ARK is a counterblast to the belief that ETFs are superior in every way to mutual funds….

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