For those of you who haven’t heard of the Ark Innovation ETF (NYSEARCA: ARKK), it is one of 5 ETFs set up by ARK Invest, a company that is focused on investing in the technologies that will shape our future. ARK has a number of funds that center around futuristic concepts like genomics, fintech, AI & robotics, and the next generation of the internet, with the Innovation ETF the centerpiece of the company, pulling from all of Ark’s innovation-based themes.
While many people may have first heard of Ark CEO Catherine Wood because of a rather bullish Tesla price target on CNBC, she has quickly become one of the most lauded investors on Wall Street thanks to the company’s jaw-dropping recent results. Up 79% year-to-date, and a whopping 139% since the March lows, the Innovation ETF has masterfully crested the wave of the stock market recovery to reach new heights.
Here are some of the ETF’s largest holdings:
No surprises here. Tesla (NASDAQ: TSLA) makes up over 10% of the fund, with Ark holding more than 370,000 shares in the electric vehicle company in this ETF amounting to roughly $800 million. With its most bullish scenario seeing Tesla shares reach a price point of $22,000 by 2024, it’s clear that Wood and her team have some serious ambitions for this stock. With Musk’s stock-based compensation-plan, in this scenario, he’d be worth roughly a quadrillion dollars in 4 years.
Just look at our returns versus that of the S&P 500! Click here to find out how we continue to beat the market and view the list of stocks we think will turn out to be the next Amazon, Tesla, or Netflix!
Second on the list of holdings is InVitae Corp, an advanced medical genetics company that is focused on bringing genetic testing to everyday medicine. Comprising about 7% of the Innovation portfolio, InVitae has more than doubled since early June, with Ark’s holdings clocking in at just under $600 million.
Square (NYSE: SQ) might be one of the companies I write about the most on this blog, and it’s in my personal portfolio to boot, so to see it as one of Ark’s biggest holdings is the welcome confirmation bias I need until Jack Dorsey packs his bags for another 6 month holiday. The fintech innovator makes up around 6% of the fund, with total holdings just shy of $500 million. It has also seen a recent surge in stock price – are you noticing a trend here? – up around 150% year to date.
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.
Financial Analyst at MyWallSt
Michael's first and favorite stock is Square, which he sees becoming a massive player in the payments industry and a leader in the war on cash.