Investors who bought the dip in Cathie Wood's ARK Innovation exchange-traded fund have been punished this year. Some finally appear to be losing their conviction.

Shares of the fund, a pandemic-era favourite largely made up of unprofitable, growth-oriented technology companies, are down 63% this year. While the S&P 500 index has rallied 12% since mid-October to cut its 2022 losses to 16%, Wood’s flagship fund is hovering near a five-year low.