Until recently, many people had never heard of Cathie Wood. But the founder and CEO of ARK Invest has rapidly jumped into the spotlight, especially since her actively traded exchange-traded funds (ETFs) have produced such immensely strong returns.
If you're interested in following Wood's prowess, there are several things you can do. As ARK Invest's chief investment officer, Wood has her name on all of her company's active ETFs. There's also another way you can tag along on Wood's picks -- if you're willing to do a little extra work.
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1. ARK Genomic Revolution ETF
The ARK Genomic Revolution ETF (NYSEMKT:ARKG) is Wood's best-performing ETF over the past 12 months, more than tripling investors' money. The fund has almost $7.7 billion in assets under management.
Genomic Revolution's goal is to invest in companies that focus on enhancing quality of life through technological, scientific, and genomics advancements. That includes areas like molecular diagnostics, informatics, and targeted therapeutics. Among the stocks that play the most prominent role in the fund are Teladoc Health (NYSE:TDOC), Regeneron Pharmaceuticals (NASDAQ: REGN), and CRISPR Therapeutics (NASDAQ: CRSP). Those who like the prospects of genomics and other biotech-related advances will appreciate the value this ETF brings to the table.
2. ARK Next Generation Internet ETF
ARK Next Generation Internet ETF (NYSEMKT:ARKW) has also generated extremely strong returns for investors, jumping 162% since this time last year. The ETF isn't quite as big as the genomics ETF, but it still has $5.3 billion under management.
As its name suggests, Next Generation Internet concentrates on companies trying to use the internet and other shared technology to produce benefits for people and businesses. That includes cloud-computing, cybersecurity, e-commerce, big data, and artificial intelligence companies, as well as social platforms, blockchain, and mobile technology businesses. Tesla (NASDAQ:TSLA) has a commanding position in this ETF's portfolio, but you'll also find companies like Roku (NASDAQ: ROKU) and Square (NYSE: SQ) among its holdings.
3. ARK Autonomous Technology & Robotics ETF
ARK Autonomous Technology & Robotics ETF (NYSEMKT:ARKQ) has the least assets of any of Wood's active ETFs, with just $1.7 billion under management. However, the return has still been strong, giving shareholders 134% since January 2020.
Wood uses this ETF to invest in companies involved in autonomous transportation, robotics, 3-D printing, energy storage, and space exploration. Tesla makes up more than 11% of the fund's holdings, but you'll also find some lesser-known companies like 3-D printing specialist Materialise (NASDAQ: MTLS) and geographic information systems specialist Trimble (NASDAQ: TRMB).
4. ARK Fintech Innovation ETF
ARK Fintech Innovation ETF (NYSEMKT:ARKW) has the weakest performance of the group, but that's not to say it doesn't pack a punch. The ETF has returned 112% over the past year, and in less than two years, it has already brought in almost $2 billion in assets under management.
Wood defines fintech innovation to include tech-enabled products and services that change the way the financial industry operates. That includes various payment platforms and innovators on the transactional side, as well as new financial intermediaries and blockchain-technology developers. Square is the biggest holding, but companies like real estate site Zillow (NASDAQ: Z) and Latin American e-commerce giant MercadoLibre (NASDAQ: MELI) are also among top holdings.
5. ARK Innovation ETF
ARK Innovation ETF (NYSEMKT:ARKK) weighs in with a 173% return since this time last year. It's by far the largest of Wood's funds, with almost $17.7 billion in assets.
ARK Innovation serves as Wood's "best-of-the-best" funds, allowing her to choose from companies covered by the other four ETFs above. Therefore, you'll find many of the same names among its top holdings, including Tesla, Roku, and Teladoc. For those not wanting to choose from among those top companies, though, the ETF makes a good catch-all choice.
6. Pick your own Wood favorites
For investors willing to do their own homework, the beauty of the active ETF framework is that Wood makes her picks public every day on the ARK Invest website and through email updates. You only lose a few hours in knowing exactly what holdings each active ETF owns and what changes have been made on any given day.
That way, you can make your own mix of Wood's favorite picks, and you can weight them any way you want. Sure, tracking is a bit of a pain, but the ability to customize your exposure is well worth the extra effort for many investors.
What would Wood do?
If you're excited about what Cathie Wood might think up next, you'll want to follow ARK Invest's active ETFs. There, you'll discover firsthand the results of her thought process, and you'll be able to invest accordingly if you like what you see.
"wood" - Google News
January 29, 2021 at 12:30PM
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Like Star Investor Cathie Wood? 6 Ways to Profit From Her Picks - Motley Fool
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