The ARK Innovation ETF (ARKK), led by Cathie Wood, is underperforming in the current AI-driven tech bull market, with investors pulling funds. Despite a 149% surge in 2020, ARKK has only gained 1.7% this year, lagging behind the iShares A.I. Innovation and Tech Active ETF's (BAI) 40% rise. The Invesco QQQ Trust ETF (QQQ) and the Philadelphia Semiconductor Index (SOX) have also outpaced ARKK, with gains of over 16% and 70% respectively. Investors are shifting focus to AI hardware stocks like NVIDIA and Broadcom, while ARKK's heavy positions in Tesla and biotech firms have not kept pace. As of Tuesday, ARKK has seen net outflows of approximately $2.51 billion year-to-date, with a significant single-day outflow of nearly $2.9 billion on April 28. Meanwhile, AI-themed ETFs such as the Roundhill Generative AI & Technology ETF (CHAT) and the Global X Artificial Intelligence & Technology ETF (AIQ) have posted strong gains of 42.9% and 20% respectively.