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.
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….