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Cathie Wood’s flagship Ark ETF hit with Morningstar downgrade on risk of ‘severe losses’

Morningstar claims star Cathie Wood has 'doubled down on her perilous approach' in the hopes she can repeat performance success recorded in 2020

Morningstar noted that Ark, which Cathie Wood founded in 2014, has ‘no risk-management personnel’
Morningstar noted that Ark, which Cathie Wood founded in 2014, has ‘no risk-management personnel’ Photo: Bloomberg via Getty Images

The flagship exchange traded fund run by star US stock picker Cathie Wood has been downgraded by Morningstar, with the ratings firm claiming the strategy has become “more vulnerable to severe losses”.

Morningstar downgraded its rating on the Ark Innovation ETF from neutral to negative, highlighting that since posting a 156% return in 2020 the fund has been “one of the worst-performing” sold in the US market.

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