Cathie Wood’s flagship Ark fund tops $300mn in fees despite losses

Cathie Wood's Ark Investment Management has earned more than $300mn in fees on its flagship exchange traded fund over the past nine years, while wiping out almost $10bn of investors' cash. Investors have continued to plough money into the Ark Disruptive Innovation ETF, despite its losses.

March 9, 2023 . 2:50 PM

1 min read

Cathie Wood’s Ark Investment Management has earned more than $300mn in fees on its flagship exchange traded fund since its inception nine years ago, while wiping out almost $10bn of investors’ cash in the same period.
Investors have continued to plough money into the Ark Disruptive Innovation ETF, known by its ticker ARKK, over the past two years even though it has been badly burnt by the downturn in technology stocks.
ARKK is unusually expensive — its annual management fee of 0.75 per cent of assets is about double the average for actively managed ETFs.
Since inception, ARKK investors have lost nearly 27 per cent in dollar weighted returns — meaning on average, every dollar invested in the fund is now worth 73 cents.
Investors who bought at the peak are down more than 74 per cent.