Investors in the Ark Innovation ETF have experienced a challenging few years. Since reaching a peak value of $158 per share in early 2021, the ETF has declined by 73%. However, there is another offering from Cathie Wood’s investment management firm that has fared much better – the ARK Fintech Innovation ETF (NYSEMKT: ARKF).
Since the beginning of 2023, the Ark Innovation Fintech ETF has seen a significant increase in value, up by 87%. This outperforms Wood’s flagship ETF, as well as the Nasdaq Composite index and the S&P 500.
The ETF holds several fintech stocks, with four key positions making up almost a third of the portfolio. These include Coinbase Global (11.6% of the ETF’s portfolio), Shopify (7.7%), Block (7.2%), and Robinhood Markets (4.9%).
Coinbase Global operates one of the largest cryptocurrency exchanges globally and has experienced strong revenue growth. Shopify provides a platform for retailers to run online shops, with significant revenue growth over the past five years. Block offers financial services through its Cash App and is focusing on improving synergies between its various offerings. Robinhood Markets aims to democratize investing and has been innovative in the brokerage space.
Investors may want to consider investing in Coinbase Global, but it’s essential to note that the Motley Fool Stock Advisor team has identified other stocks as potentially offering significant returns. The Stock Advisor service has a history of outperforming the S&P 500 since 2002.
Overall, the Ark Fintech Innovation ETF’s concentration in these four stocks highlights its focus on fintech companies with strong growth potential.