The ARK Innovation ETF (ARKK), managed by Cathie Wood's ARK Invest, plummeted 5.01% in intraday trading on Wednesday. This sharp decline comes in the wake of a damning report from Morningstar, which revealed that ARK Invest has destroyed the most investor capital among fund-management firms over the past decade.

According to the Morningstar analysis, ARK Invest has incinerated a staggering $13.4 billion in investor wealth over the last ten years. This puts the firm at the top of the list of worst-performing fund managers, significantly outpacing the second-place KraneShares, which destroyed $6.66 billion. The report specifically highlighted the ARK Innovation ETF as the third-worst performing fund, trailing only behind two leveraged inverse ETFs designed to move against market trends.

This revelation has likely shaken investor confidence in ARK Invest and its flagship fund. While ARKK gained notoriety during the COVID-19 market boom, with a nearly 150% rally in 2020, its performance has since deteriorated dramatically. The fund ended 2021 down 24% and suffered a brutal 67% drop during the 2022 bear market. Today's sharp decline suggests that investors may be reassessing their positions in light of this long-term underperformance, potentially leading to increased outflows and further pressure on the fund's value.