The Ark Innovation ETF managed by Cathie Wood is a highly followed actively managed fund. In 2020, all six of Ark Invest’s active exchange-traded funds saw significant price increases, with the flagship Ark Innovation ETF climbing 148.7%. The fund focuses on companies developing disruptive technologies in genomics, automation, artificial intelligence (AI), and finance.
Despite holding 33 stocks, just four make up the majority of the fund’s investments. Coinbase, the leading U.S.-based cryptocurrency exchange, is the largest holding at 10.6%. Roku, a player in the connected-TV and streaming space, follows at 8.4%. UiPath, a robotic process automation (RPA) company, and Tesla, a leader in autonomous vehicle technology, round out the top four holdings.
While these companies show promise for future growth, Ark has been trimming its positions in some of them due to their recent stock price rallies. However, the managers remain committed to these stocks, believing in their long-term potential.
Investors should carefully consider their investment decisions, as the performance of the Ark Innovation ETF is dependent on the success of these key holdings.