Cathie Wood's Ark Investment (Ark Investment Management) had about $42.4 billion in ETF on Wednesday, among ETF issuers in the United States.Assets fall out of the top tenRanked 11th.

The ark made it into the top 10 earlier this year, thanks to a flood of investors, at a time when the ark's $21 billion ARKK was shining, with an annualised return of more than 150%, thanks largely to electric carmaker Tesla, Inc. and other disruptive companies.But this year, Treasury yields soared, eclipsing many of Wood's favorite technology stocks.

Rival WisdomTree has taken the lead due to a slight decline in Ark's assets, while the gap between the two issuers is less than $3 billion after Dimensional Fund Advisors, a newcomer to the industry.

Morningstar released a report on May 28th warning investors that the risks of investing in themed technology were all the rage last year. Morningstar saidTheme funds usually hold large positions in small-cap stocks, which can be riskier than large-cap trading. In times of market turmoil, investors seek to avoid large-cap stocks, and high-risk theme funds may experience large capital outflows.

Meanwhile, ARK Innovation is at the bottom of the list of 593 US medium-sized growth funds this year, according to Morningstar.

Although ARK assets fell out of the top 10, ETF analyst Balchunas said:

Although the Ark mania may be dead, Ark is still alive and worth more than $40 billion, a staggering number for independent and active publishers.

Assuming there is no large-scale outflow, the Ark mania may be reignited when speculative technology stocks become popular again.

In addition, Sister Mu is still full of confidence in growth stocks, she said at a webinar hosted by Ark on Tuesday.Earlier this year, the economic restart triggered widespread shortages of raw materials, supporting cyclical value stocks, but now that the economy is on the other side of the cycle, she believes the market will re-embrace growth stocks and innovation stocks.

Our long-term products are about to show amazing growth, especially for those who think the environment is slow. If the growth rate we forecast can be achieved, we are confident that we will have extraordinary returns over the next five years.

ARKK, ARK's main ETF, rose 0.82 per cent to $117.82 on Sept. 15.

Compared with last year's surge, the fund has performed poorly this year. The fund's investment portfolio is mainly invested in Tesla, Inc. and Teladoc Health Inc. And Unity Software Inc. Growth stocks, such as those, have fallen 5.36% so far this year, lagging far behind the nearly 19% rise in the s & p 500.