Analyzing the Performance and Strategy of Cathie Wood's Flagship ARK Innovation Fund

Tuesday, 2 April 2024, 12:08

The popular ARK Innovation ETF managed by Cathie Wood has faced a significant decline of 68% following the impact of interest rate hikes. Despite Wood's reputation, investing in actively managed funds like ARK Innovation ETF presents challenges in outperforming indexes over the long term. It's essential for investors to carefully evaluate the fund's holdings and management strategies before considering it as an investment.
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Analyzing the Performance and Strategy of Cathie Wood's Flagship ARK Innovation Fund

Beating the index is hard

This isn't a knock on Cathie Wood, ARK Invest, or the ARK Innovation ETF. But the simple truth is that actively managed funds have a tough time outperforming indexes over the long run. Below, you can see how Wood's fund thrived in a low-rate environment that was friendly to growth stocks.

Pulling apart where the fund's returns come from

An active fund means that ARK has traded in and out of stocks over time, but as with many funds, a top echelon of stocks constitutes a majority. It's not a perfect comparison, but investors can see how the fund's top selections have performed over the past five years.

  • Coinbase: 9.66%
  • Tesla: 8.70%
  • Roku: 7.63%
  • Block: 6.87%
  • UiPath: 5.81%
  • CRISPR Therapeutics: 5.25%
  • Robinhood: 4.45%
  • Zoom Video Communications: 4.36%
  • Roblox: 4.04%

Analyzing the fund's performance offers insights into its strategy and potential drawbacks for investors.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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