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.
(Photo : by Michael M. Santiago/Getty Image)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.
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.
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