Let’s take a look under the hood of this year’s most talked-about fund and find out some of the Ark Innovation ETF’s largest holdings.
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.
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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.
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