Investor Warning: 2 Worst-Performing ETFs Right Now

Core Viewpoint - Cathie Wood's Ark ETFs are currently underperforming, with four of the top ten worst-performing ETFs in November, raising questions about their investment strategy and stock selections [2][10]. Performance Analysis - The Ark Next Generation Internet ETF (ARKW) and the Ark Space & Defense Innovation ETF (ARKX) were the two worst-performing funds, with ARKW down 1.5% and ARKX down 0.07% [2][9]. - Key holdings in ARKW include Tesla, Advanced Micro Devices, and Bitcoin, which together make up 22% of the portfolio and have seen declines of 1.5%, 15%, and 14% respectively [5]. - In ARKX, two of the top three positions are down, with Archer Aviation dropping 10%, Rocket Lab down 13%, and AMD down 15% [7]. Long-term Performance - Despite recent underperformance, both ARKW and ARKX have shown strong long-term performance, with ARKW achieving an average annual return of 53% over the past three years compared to 14% for the S&P 500, and ARKX achieving over 29% [11]. - The recent slump in performance may present a buying opportunity for investors looking to capitalize on the potential for future gains from these historically strong performers [12].