The ARKK, which surged 149% in 2020, is currently being marginalized by the market. While investors chase Nvidia, Broadcom, and AI hardware stocks, Tesla and biotech companies heavily invested by Wood have failed to keep up with this round of market performance.

Source: Jin Ten Data

"Cathie Wood," known as "Wood Sister," leads the ARK Innovation ETF (ARKK), which focuses on "disruptive innovation," and has clearly lagged in this AI-driven tech bull market.

FactSet data shows that as of Tuesday, ARKK has only risen 1.7% this year, far below the more than 40% increase of the iShares A.I. Innovation and Tech Active ETF (BAI) during the same period. In contrast, the Invesco QQQ Trust ETF (QQQ) has risen more than 16% this year, and the Philadelphia Semiconductor Index (SOX) has gained about 70%.

Since the end of 2019, ARKK has cumulatively risen 56.3%, while QQQ has gained nearly 233% during the same period. If counting from the fund's inception in 2014, ARKK has cumulatively increased about 284%, still significantly trailing QQQ's 599%.

ARKK once surged nearly 149% during the pandemic in 2020, when Tesla (TSLA.O) was its largest holding. However, the fund has not managed to replicate that strong performance since then.

According to data from ARK's official website, as of Tuesday, Tesla remains ARKK's largest holding, with the other top five holdings including Advanced Micro Devices (AMD.O), Circle Internet Group (CRCL), Crispr Therapeutics (CRSP.O), and Tempus AI (TEM).

Todd Rosenbluth, head of research at TMX VettaFi, indicated that ARKK's popularity has declined in recent years because it has failed to sustain high returns from the past, "missing out on some winners." He also pointed out that the fund currently only has a one-star rating from Morningstar.

Although the AI boom has driven tech stocks significantly higher, investors continue to withdraw from ARKK. FactSet data shows that as of Tuesday, the fund has seen a cumulative net outflow of about $251 million this year, with a single-day net outflow nearing $2.9 billion on April 28.

Meanwhile, AI-themed ETFs have performed strongly. As of Tuesday, the Roundhill Generative AI & Technology ETF (CHAT) has surged 42.9% this year, the Global X Artificial Intelligence & Technology ETF (AIQ) has risen 20%, and the Dan Ives Wedbush AI Revolution ETF (IVES) has increased 13.8%.

The State Street Technology Select Sector SPDR ETF (XLK), which tracks the technology sector, has accumulated an increase of nearly 22% this year, with its top five holdings including Nvidia (NVDA.O), Apple (AAPL.O), Microsoft (MSFT.O), Micron Technology (MU.O), and Broadcom (AVGO.O).

Nicholas Colas, co-founder of DataTrek Research, stated that the core driving expansion of global tech market capitalization has shifted from software to hardware.

However, the recent rapid rise in tech stocks has raised concerns among some market participants. BTIG's chief market technician Jonathan Krinsky believes that after the recent "parabolic rise" in tech, semiconductor, and AI sectors, there could be significant reversal volatility.

Other ETFs under "Wood Sister" have relatively mixed performance. As of Wednesday afternoon local time, the ARK Autonomous Technology & Robotics ETF (ARKQ) has risen more than 19% this year, the Ark Space & Defense Innovation ETF (ARKX) has increased more than 20%; while both the ARK Next Generation Internet ETF (ARKW) and the Ark Blockchain & Fintech Innovation ETF (ARKF) have still recorded declines.