Cathie Wood’s ARK Innovation ETF (ARKK) is back — and back big. It’s the top diversified ETF again this year so far, largely due to some stellar winners.
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Nine of ARK Innovation’s stock holdings, including Coinbase Global (COIN), Pacific Biosciences (PACB) and Exact Sciences (EXAS), are up 17% or more this year so far, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. And on average, the nearly 30 stocks in the ETF are up more than 10%.
And that’s good news for the popular $6.8 billion-in-assets fund. It’s now up more than 15% this year. That easily tops the S&P 500’s 2.4% year-to-date return. And it also makes the ARK Innovation the No. 1 actively traded diversified ETF, says Morningstar Direct.
It’s a much needed bounce. The ETF lost more than 60% of its value last year, making it the worst-performing diversified ETF. ARK Innovation is capitalizing on what appears to be investors’ willingness to buy speculative investments after 2022’s beatdown.
“Despite a likely slight earnings decline in 2023 — at least that’s our view in LPL Research — we expect a solidly positive year for stocks,” said Jeff Buchbinder, Chief Equity Strategist for LPL Financial.
ARK Invest Having A Heck Of A 2023 So Far
It’s been awhile since ARK Innovation has been on the top. But it’s back with a vengeance.
Not only is the ETF tops for 2023 so far, it’s miles ahead of the rest. The No. 2 actively traded diversified ETF this year is Invesco S&P 500 High Beta (SPHB), which is loaded up with some of the market’s most volatile large-cap stocks. But it’s only up a fraction that ARK Innovation is this year: 9.4%.
Much of the gains, though, are due to stellar performances by a few stocks.
Cathie Woods’ Top Stock Pick
An examination of Woods’ ARK Innovation portfolio shows three investments to beat all others.
Cryptocurrency play Coinbase is the ETF’s top-performing stock. It’s up more than 39% this year, capitalizing on an uptick in cryptocurrency prices. The price of Bitcoin alone is up more than 25% in the past month….
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