Cathie Wood, known as CEO of Ark Investment Management, made trades in her funds. Despite a 153% return in 2020, her Ark Innovation ETF (ARKK) remains behind the Nasdaq Composite index with a 25% return in the past 12 months. 

The ETF’s annualized return over three years is negative 24% and just 3% over five years, falling short of Wood’s goal of 15% annual returns.

Wood’s strategy involves high-risk bets on young, small-company stocks in AI, blockchain, DNA sequencing, energy storage, and robotics. Morningstar, however, remains critical, citing Ark Innovation’s doubtful ability to navigate the challenging terrain. 

The strategy’s focus on volatile stocks with uncertain futures contributes to middling total returns and extreme volatility since its 2014 inception.

Despite the criticism, Wood made notable trades, acquiring shares in Meta Platforms and Amgen while shedding positions in Pfizer and Coinbase Global. This comes as Ark Innovation experienced a net outflow of $1.3 billion during its recent 12-month rally. Wood’s moves reflect a dynamic approach, but questions linger regarding her fund’s ability to deliver consistent returns.

Also read: ARK CEO Cathie Wood Reveals Bold 25%  Personal Wealth Bitcoin Investment