Cathie Wood's flagship exchange-traded fund, the ARK Innovation ETF, has surged 50% this year, and investors are using this rally as an opportunity to exit the fund, resulting in a net outflow of $717 million over the past 12 months. The fund's assets under management have shrunk from nearly $30 billion to approximately $9 billion, primarily due to investment losses. The performance gap is attributed to investors' shifting sentiment and preference for mature, profitable technology companies like Microsoft and Amazon.com. Investors seem to have less interest and patience for companies projected to achieve profitability in several years. ARKK shares are trading approximately 70% below their all-time high, while the S&P 500 has experienced a 17% increase this year.