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Cathie Wood’s Famous Outperformance Versus the S&P 500 Is Fading

  • Flagship fund beat S&P 500 by 134 percentage points in 2020
  • Tech stock rout is lashing ARK’s disruptive innovation bets
Cathie Wood

Cathie Wood

Photographer: Kyle Grillot/Bloomberg

With another 4.2% drop on Tuesday, the tech-heavy ARK Innovation ETF is closer to wiping out its famous outperformance versus the S&P 500 Index that helped propel Cathie Wood to Wall Street superstardom.

As rising yields hammer expensive-looking growth companies with shaky profit outlooks, the exchange-traded fund beloved by day traders, ticker ARKK, has already plunged 18.7% this year -- down 51% from February’s peak.