ARK ETFs Are Soaring, But Investors Still Aren’t Buying

Cathie Wood’s ARK Invest is having its best year since the pandemic boom of 2020. But judging by investor flows, few seem to care.

The ARK Innovation ETF (ARKK) is up 37% year to date, while the ARK Next Generation Internet ETF (ARKW) has gained an even more impressive 49%. Yet, despite the eye-popping returns, both funds have seen outflows in 2025: ARKK has lost $783 million in assets this year, and ARKW has shed $127 million.

In total, ARK’s suite of 13 ETFs has seen net outflows of $553 million year to date. The only bright spot is the ARK 21Shares Bitcoin ETF (ARKB), which has pulled in $463 million thanks to the surge in Bitcoin, which recently topped $120,000.

The divergence between performance and flows reflects the fact that many investors have moved on from ARK.

Investors Soured by ARKK Collapse

After years of brutal underperformance, a large portion of ARK’s former investor base appears disillusioned.

From its peak in 2021 to its low in 2022, ARKK collapsed by 81%, and it hovered near those lows for more than two years. As recently as April of this year, the fund was trading around $40, just above its post-crash low of $30 and still far below its $156 high in 2021.

Even today, with the ETF back up to $78, it remains 50% below its peak. And while that rebound has been swift—ARKK has nearly doubled in just a few months—many investors seem wary of jumping back in.

The company didn't immediately respond to a request for comment on this article.

Long-Term Track Record Mixed

ARKK is up 321% since its launch in 2014, beating the S&P 500’s 280% return over that span. But it trails the Nasdaq-100 Index, which has returned 508% (and it’s done so with significantly more volatility).

ARKW, by contrast, has been the standout. The ETF has returned nearly 900% since its inception and is now just 14% below its all-time high from 2021. That resilience has come from owning the right stocks at the right time.

Unlike ARKK, which has been bogged down by underperformers, particularly in the health care space, ARKW has concentrated exposure to names like Robinhood Markets Inc. (HOOD), Coinbase Global Inc. (COIN), Roblox Corp. (RBLX), Tesla Inc. (TSLA) and Circle Internet Group Inc. (CRCL). 

With the exception of Tesla, all of those stocks have exploded higher in recent weeks, buoyed by renewed interest from retail traders.

In this case, ARK was able to position itself in front of the current market narrative, something it failed to do in 2023 and 2024, when it famously sold Nvidia Corp. (NVDA) near its lows, missing out on the chipmaker’s historic run that culminated in it becoming the world’s most valuable company.

But the rebound in ARK performance may not be enough to win back the faithful. The reverence for Cathie Wood that once defined the firm has faded, and retail investors who once treated the CEO like a market oracle are now more hesitant. 

Whether ARK’s current hot streak can turn into lasting momentum remains to be seen. The firm’s challenge isn’t just outperforming but holding onto those gains when the inevitable downturn hits.