Cathie Wood sells $16.2 million of tumbling megacap stock

Cathie Wood, main of Ark Investment Management, has built a estimation for backing disruptive tech companies.

Yet Wood precocious reduced 1 of her highest-conviction investments, Tesla, aft the banal fell astir 6.23% implicit the past period and is down much than 9% twelvemonth to date.

In 2025, the flagship Ark Innovation ETF gained 35.49%, acold outpacing the S&P 500's instrumentality of 17.88% successful the aforesaid period. But truthful acold this year, Wood's flagship Ark Innovation ETF (ARKK) is down 2.85%, portion the S&P 500 surged 8.56%, Yahoo Finance information shows.

Wood gained a estimation aft the Ark Innovation ETF delivered a 153% instrumentality successful 2020. However, her benignant besides brings achy losses successful bearish markets, arsenic seen successful 2022, erstwhile the Ark Innovation ETF tumbled much than 60%.

Those swings person weighed connected Wood's semipermanent gains. As of June 12, the Ark Innovation ETF has delivered a five-year annualized instrumentality of -8.06%, portion the S&P 500 has an annualized instrumentality of 11.84% implicit the aforesaid period, according to information from Morningstar.

Cathie Wood expects a complaint chopped

Wood focuses connected high-tech companies crossed artificial intelligence, blockchain, biomedical technology, and robotics. She thinks these businesses person beardown maturation potential, though their volatility often causes fluctuations successful the Ark's funds.

According to Morningstar expert Bella Albrecht, 2 of Wood's Ark funds were among the worst-performing ETFs successful the archetypal 4th of 2026. The Ark Next Generation Internet ETF (ARKW) ranked 2nd connected the list, portion the ARK Innovation ETF placed fifth.

From 2014 to 2024, the Ark Innovation ETF wiped retired $7 cardinal successful capitalist wealth, according to a March 2025 investigation by Morningstar's expert Amy Arnott. That made it the third-biggest wealthiness destroyer among communal funds and ETFs successful Arnott's ranking. The expert hasn't updated her ranking.

Wood said connected the June 5 occurrence of "In the Know" that she is intimately watching June 17, erstwhile Kevin Warsh, the caller Federal Reserve chair, announces the adjacent involvement complaint decision.

"I bash judge Kevin Warsh knows that involvement rates person to travel down, owe rates astatine least. And if ostentation comes down arsenic productivity is increasing, nary substance however beardown the system is, I deliberation helium volition chopped rates," Wood said.

Related: Cathie Wood buys $4.3 cardinal of tumbling tech stock

Wood argued that productivity improvements brought by exertion are helping thrust the system portion reducing inflation. She added that lipid prices already look to beryllium peaking and could autumn further if the Iran warfare is resolved.