What if you bought innovation ETF ARKK at the peak of the GameStop meme frenzy?
This uses real data to show what would have happened if, around January 27, 2021 — the peak of the meme-stock frenzy that sent GameStop soaring — you had invested a lump sum in the flagship innovation ETF ARKK. We honestly examine the crash after buying at the frenzy's peak.
⚠️ Know the risk first
After buying near the frenzy peak, ARKK crashed over 70% from its high. The star of this case is not the final return but the extreme drawdown and long loss period.
What happened that day
In late January 2021, the meme-stock episode peaked as retail investors banded together to send the heavily shorted GameStop soaring. Amid market-wide speculative fervor, ARKK was also at peak popularity, but crashed over 70% from its high after peaking in February 2021.
Why this date
The buy point is late January 2021, the peak of the meme frenzy, computing 'what if you bought a popular growth asset at the peak of a market-wide frenzy.'
Investment conditions
Asset · ARKK (innovation ETF) · lump-sum near the meme-frenzy peak, then held long-term
Method · Lump-sum (all at once)
Period · 2021-01-27 ~ 2026-07-01
Amount · $7,407
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Buy and final prices are shown in the asset's local currency (US & crypto $, Japan ¥, Korea ₩). Total invested and final value are in Korean won (₩).
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-80.9%
Largest drop from peak
Longest loss period
66months
Months in loss: 66
Recovery period
0months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $7,407 → Final value $4,455 (-39.9%), Maximum drawdown (MDD) -80.9%
Why this period and asset
In late January 2021, the 'meme-stock' episode peaked as retail investors banded together online to send the heavily shorted GameStop soaring. Speculative fervor filled the market, and Cathie Wood's innovation ETF ARKK, a symbol of the growth-stock craze, was hugely popular. But after peaking in February 2021, ARKK crashed over 70% from its high on rate hikes and a growth-stock correction. It's a case where the frenzy's peak was the most expensive buy point.
Interpreting the result
Read the final value versus total invested and the maximum drawdown below together. Because you bought at the peak of a market-wide frenzy, you likely went through an extreme decline and a very long loss period in the subsequent growth/theme correction. Whatever the final number, this asset passed through a stretch where its value shrank dramatically. It shows that 'when everyone is excited' is usually the most dangerous time to buy.
Caveats & limits
The key here is not the final return but the extreme drawdown and long loss period after buying at the frenzy's peak. Innovation/theme ETFs concentrate in specific growth stocks and swing far more than an index. Always review the maximum drawdown and loss periods. Figures use adjusted close and exclude exchange rates, fees, and taxes, and past results do not guarantee the future. This page recommends no product.
Event fact sources
- SEC — Staff Report on Equity and Options Market Structure Conditions in Early 2021 (GameStop)
- Reuters, GameStop meme-stock frenzy coverage (2021-01)
Requested date vs actual trading date
If the event date is a holiday, the fill uses the next trading day's close. The 'effective trading date' below is the date actually used.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-28
- Effective trading date: 2026-07-01
- Price basis: Adjusted close (reflects dividends and stock splits)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
I didn't buy GameStop — why ARKK?
The GameStop frenzy symbolizes market-wide speculative fervor. Amid that fervor, ARKK — the flagship growth-theme ETF — was also near a peak, so we use it to show 'what if you bought a popular growth asset at the peak of the meme frenzy.'
How far did it fall?
After peaking in February 2021, ARKK crashed over 70% from its high on rate hikes and a growth-stock correction. Buying near the frenzy peak would have meant passing through this extreme drawdown and long loss period. Check the metrics below.
Why is an innovation ETF this volatile?
Theme ETFs like ARKK concentrate in a few high-growth stocks. So they rise more when up and fall far more when down than a diversified index. Buying at a frenzy peak maximizes that risk.
Are FX and taxes reflected?
No. Exchange rates, trading fees, and taxes are not reflected — figures are pre-tax. This page only shows historical data and recommends no product.
Related scenarios
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.