Investors who buy exchange traded funds (ETFs) instead of individual stocks are considered to have a lower risk appetite. ETFs generally provide a diversified exposure to a portfolio of stocks that helps investors to mitigate risks by a significant margin.
ETF investors generally aim to match the broader market return and have modest expectations. While they want to see the value of their portfolio rise over the long-term, investors also understand a few underperforming stocks will offset massive gains from the ETFs top stock holdings.
However, Cathie Wood who is considered a rising star in the investment world is rapidly disrupting the ETF space. Wood’s company ARK Invest has five actively managed funds that have been on an absolute tear in the last year.
For example, if you would have invested $1,000 in any of Cathie Wood’s active ETFs, you would have easily doubled your investment (and more!) in the last 12 months. Here, we take a look at the top holdings in each of these funds.
ARK Innovation ETF (AMEX: ARKK)
This ETF is the largest fund under the ARK Invest umbrella with $28 billion in assets under management, up from just $18 billion at the end of 2020. An investment of $1,000 in the ARK Innovation ETF would have returned $3,173 in the last year.
The top holdings of this fund include:
Tesla (NASDAQ: TSLA): 10.44%
Square (NYSE: SQ): 6.52%
Teladoc (NYSE: TDOC): 5.86%
Roku (NASDAQ: ROKU): 5.51%
Baidu (NASDAQ: BIDU): 3.4%
ARK Fintech Innovation ETF (ARCA: ARKF)
The ARKF ETF is a fund of stocks that focuses on financial innovation. These companies are involved in development of transaction innovations, blockchain tech, customer facing platforms, risk transformation as well as frictionless funding platforms among others.
An investment of $1,000 in the ARK Fintech Innovation ETF would have returned $2,890 in the last year. The ETF has $4.7 billion in AUM and its top five holdings include:
Square: 10.42%
PayPal (NASDAQ: PYPL): 5.3%
Silvergate Capital (NYSE: SI): 4.82%
Zillow (NASDAQ: ZG): 4.71%
Intercontinental Exchange: 3.86%
ARK Autonomous Technology & Robotics ETF (AMEX: ARKQ)
The fund’s mandate is to identify companies that will benefit from new technologies and automation. Here, the fund manager aims to identify technologies that have the potential to disrupt the automation and AI space. This fund has $4.2 billion in AUM and its top holdings include:
Tesla: 10.53%
Baidu: 5.47%
Trimble (NASDAQ: TRMB): 5.34%
JD.com (NASDAQ: JD): 4.79%
Deere & Company (NYSE: DE): 4.32%
An investment of $1,000 in the ARK Autonomous Technology & Robotics ETF would have returned $2,860 in the last year.
ARK Next Generation Internet ETF (AMEX: ARKW)
This ETF has $9.4 billion in AUM and the fund holds companies that are leveraging cloud computing, artificial intelligence and data analytics to gain business insights.
An investment of $1,000 in the ARK Next Generation Internet ETF would have returned $3,208 in the last year.
The top five holdings of the ETF include:
Tesla: 10.4%
Square: 5.52%
Grayscale Bitcoin Fund (OTC: GBTC): 5.38%
Teladoc: 4.06%
Roku: 3.53%
ARK Genomic Revolution ETF (AMEX: ARKG)
This ETF has $12.7 billion in AUM and as the name suggests the fund holds companies part of the molecular diagnostics, bioinformatics, targeted therapeutics verticals among others.
An investment of $1,000 in the ARK Genomic Revolution ETF would have returned $3,30 in the last year.
The top holdings of the ETF include:
Teladoc: 7.18%
Exact Sciences (NASDAQ: EXAS): 5.05%
Pacific Bioscience (NASDAQ: PACB): 4.93%
Regeneron Pharma (NASDAQ: REGN): 4.57%
Twist Bioscience (NASDAQ: TWST): 4.08%
The bottom line
While investors would have benefitted by holdings these ETFs in their portfolio, you should also know that these funds lost over 20% during the bear market of 2020. You need to have a disciplined approach in order to derive huge payoffs.
Related: A Deep Dive On What's Now a Legendary ETF
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