Cathie Wood says her 'volatile' ARK Innovation fund shouldn't be a 'huge slice of any portfolio'

Core Viewpoint - Cathie Wood, CEO of Ark Invest, defends the underperformance of the ARK Innovation ETF, emphasizing its role as a satellite strategy rather than a core portfolio component [1][2]. Group 1: Fund Performance - The ARK Innovation ETF has lost nearly two-thirds of its value since its peak during the pandemic, when shares reached nearly $160 and the fund saw a 149% increase in 2020 [1]. - Year-to-date, the fund's shares have increased by only 2.8%, significantly lagging behind the S&P 500's 24% gain [2]. - Over the past three years, the fund has experienced an annual loss of approximately 23% [2]. Group 2: Investment Strategy - Wood acknowledges that the pandemic led to unusual behaviors that inflated ARKK shares, but asserts that the underlying technologies and research are now more advanced [2]. - The multiomics life sciences and healthcare sectors are identified as the primary factors dragging down the fund's performance, with expectations for improvement as new genome therapy companies like Intellia Therapeutics emerge [2]. Group 3: Fund Positioning - The fund is positioned as a complement to broad-based benchmarks, distinguishing itself from them [3]. - Wood expresses confidence that the truth regarding the fund's value will ultimately prevail [3].