MATL, 18 16 bytes
"@gXH"HX@Jh)]0&h
Input is a cell array of words. Try it online!
###Explanation
Explanation
" % Implicit input: cell array of strings. For each cell
@g % Push content of current cell, that is, a word
XH % Copy into clipboard H
" % For each letter
H % Push word
X@ % Push iteration index
Jh) % Index from that until the end into current word
] % End
0 % Push 0. Will be cast to char. Char(0) is displayed as space
&h % Concatenate horizontally all elements so far. Implicit display