Cathie Wood stocks are a hot commodity. As the founder of Ark Invest, she’s known for picking stocks. As a result, when she says she likes a stock, people pay attention. She’s a pretty neat lady.
Who Is Cathie Wood?
Cathie Wood is a well-known professional investor and the founder of Ark Invest. In the age of internet memes and mainstream investing, she’s become a popular figure across social media.
Wood is well known for her aggressive investing style in highly speculative growth names. She’s been in the financial world for several decades now. In fact, she previously worked as a Chief Investment Officer at AllianceBernstein.
Wood was named the best stock picker in 2020 by Bloomberg and is a regular guest on financial networks such as CNBC. So Cathie Woods stocks are great to watch.
Wood has a massive following amongst retail investors on social media platforms like Twitter and Reddit. There are numerous accounts and sites dedicated to Wood’s daily trading activity. As glorified as she is when her stock picks do well, Wood is equally criticized when her stocks are falling. One thing that we know for sure, Wood is never shy about making a bold prediction and stands by her decisions no matter what happens to the stock’s price.
What Is Ark Invest?
Ark Invest is Wood’s investment management firm that operates several publicly traded ETFs that hold hand-picked stocks by Wood and her team. Like Wood, the company specializes in selecting growth stocks that are considered disruptive innovations.
Ark Invest’s ETF investments are said to have an outlook of five years or more, so Wood is not concerned with the short-term performances. As you can probably imagine, Ark Invest received its name from the Ark of the Covenant but is also an acronym for Active Research Knowledge.
Which ETFs Does Ark Invest Offer?
Currently, Ark Invest offers nine different ETFs that trade on the public markets. You do not have to buy these from Ark Invest as any brokerage should offer Ark’s ETFs to buy and sell. We won’t go through all nine here, but we will talk about some of the more impactful ETFs that Ark offers. If you are a growth investor looking for a way to get exposure to dozens of different companies, then Ark’s ETFs might be made for you!
Ark Disruptive Innovation ETF (ARKK)
The flagship ETF from Ark Invest, the Disruptive Innovation ETF holds some of the most popular growth names on the market. This ETF has a specific focus on innovative companies that are looking to disrupt both existing and potential markets.
It holds companies that are involved in sectors like artificial intelligence, autonomous vehicles, fintech, DNA sequencing, robotics, and 3D printing. As you can see, the holdings are all over the map.
But the one thing they all have in common is they are innovators. ARKK had lost 20.55% year to date in 2021. Things could be looking up in 2022, however.
As a result, keep these Cathie Wood stocks on your watch list. You could be setting up your investment portfolio pretty well moving forward.
Ark Next Generation Internet (ARKW): Cathie Wood Stocks
Established back in 2014, it’s interesting to see a history of the companies that were held in this fund as the internet evolved. The Next Generation Internet ETF holds companies involved in things like artificial intelligence, cloud computing, digital media. As well as the Internet of Things, mobile payments, and autonomous technology. You can probably bet that the fund will soon be involving some stocks that are linked to the all new Metaverse. ARKW had lost 13.50% year to date in 2021.
ARK Genomic Revolution (ARKG): Cathie Wood Stocks
Surprisingly, even though ARKG isn’t the biggest fund, it’s one of the most well known and discussed ETFs on social media. ARKG revolves around the future of genetics. It provides investors with exposure to things like DNA sequencing and CRISPR gene editing.
It’s an industry that not a lot of people know much about. So Cathie Wood and her team have done the research for you. This fund was also established in 2014. And will undoubtedly look a lot different ten years from now than it does today. Wood is a firm believer that genomics is the future of genetic studies. ARKG lost 30.86% year to date in 2021.
ARK Fintech Innovation (ARKF)
Wood is also a strong supporter of fintech companies and digitizing the banking system. The Fintech Innovation ETF invests in companies that are disrupting industries like digital wallets, mobile payments, lending, risk transformation, artificial intelligence, and eCommerce.
ARKF is focused on companies that are attempting to disrupt the way we think about payments and transfers of capital. ARKF has lost 15.25% year to date in 2021.
With the way eCommerce is going because of Covid, we could be going strictly online with payments. In fact, the DSW app allows you to buy shoes while in the store right from the app. You don’t even have to stand in line to pay.
Where else will that start to happen? Download the Target app and walk into the store and pay. Let me tell ya, that’d be quite handy during the holiday season. Imagine not having to stand in line for 45 minutes to buy something.
A Final Word on ARK Invest’s ETFs
As you can see, it has been a tough year for Ark Invest’s ETFs. While 2020 saw an unprecedented bull run for the stock market, 2021 has been one of consolidation, especially for growth names. Some investors have turned openly critical of Wood and Ark’s stock choices. There is often little consideration taken for the differences in operating an ETF and a personal portfolio. This year has been a down year for most of the stocks we love, and remember, Wood’s outlook when she buys a stock is at least five years down the road.
Cathie Wood Stocks That She Loves
Even though Ark Invest has quite a few ETFs it offers, you will notice that there is a lot of overlap in stocks for each fund. Another criticism of Wood’s stock choices has been that they often do not fit the theme of the ETF. Either way, there are obviously some stocks that Wood loves as you will see them appear multiple times across Ark’s holdings. Including 3D printing stocks.
Tesla (NASDAQ: TSLA)
The stock that brought Cathie Wood to the mainstream. In 2018, Wood famously predicted that Tesla’s stock would reach $4,000 per share within five years. She was mocked and ridiculed for this take.
But by January of 2021, Tesla had reached this level on a split-adjusted basis. Tesla accounts for the largest weighted holding of Ark’s flagship Innovation ETF, accounting for 8.12% of the shares in the fund.
The stock also accounts for 11.11% of the Autonomous Technologies ETF (ARKQ). And 9.56% of the Next Generation Internet ETF as well. With Elon Musk at the helm, you never know what’ll happen with Tesla’s stock. His tweets can move the stock.
In fact, Musk’s tweets are so widely watched, they move other sectors. I wish my tweets were that powerful. Although, on second thought, that sounds like a lot of responsibility ha.
Coinbase (NASDAQ: COIN)
Wood was criticized for her investment in Coinbase which she bought at levels higher than they are now. But for Wood, it is a belief in what this company will become in the future. She is a massive believer in cryptocurrencies and also provided a $500,000 price target for Bitcoin. Coinbase can be found in several ARK ETFs including the Fintech Innovation ETF where it accounts for an 8.54% share of the fund, and 5.12% of the Innovation ETF.
TelaDoc Health (NYSE: TDOC)
An interesting choice for Ark Invest as TelaDoc has lost more than 52% of its stock value year to date. TelaDoc not only makes up 7.14% of the Genomic Revolution ETF, but it is also the third highest holding at 5.84% in the Innovation ETF. Even though the stock has been beaten up this year, Wood must like something about the company to invest so heavily in it. While it certainly is not at the top of my investing list, Wood and her team obviously think greener days are ahead for the company.
Palantir Technologies (NYSE: PLTR)
Palantir is an enigma of a company and the stock has been a popular one amongst retail investors. But Wood also owns over 22 million shares of Palantir in her Innovation ETF.
Data analytics is a market that is only going to get bigger in the future. Investing in Palantir at these prices follows along with Wood’s goal to invest in the future today.
While Palantir has not had the best year, neither has any growth stock on the market. An investment in Palantir is an investment in the big data industry moving forward.
It represents the epitome of a growth name that has the potential to be a multi-bag return over the next decade. Could it be the next Amazon or Netflix?
Conclusion: Cathie Wood Stocks
Cathie Wood is a fearless and bold investor that is changing the way we think about traditional ETFs and investing in growth stocks. Wood targets disruptive innovation as the best way to enter an industry in its infancy. Her Ark Invest ETFs offer investors a wide range of exposure to companies that will be worth much more in the future than they are today.
To provide an idea of Cathie Wood stocks just look at the most popular growth names. Stocks like Tesla, Coinbase, Palantir, and TelaDoc, give you insight into Wood’s type of stock. Wood is also doing a lot of work to blaze a trail for young females who are looking to get into the financial world.
She is a pioneer and a fearless risk taker, so it should be no surprise that she is one of the most popular investors in the world. It has been a down year for Ark Invest’s ETF, but we have a suspicion that these will be bargain prices for these funds when we look a few years down the road.