Cathie Wood’s
ARK Innovation ETF
has significantly outperformed the broader market lately, thanks to robust gains in tech stocks.
DataTrek Research says the exchange-traded fund’s top holdings are worth further research and consideration for investors betting on a year-end rally.
Since Oct. 27, the
ARK Innovation ETF
(ticker: ARKK) has posted a return of 23%, while the
S&P 500
and
Nasdaq Composite
are up 9.2% and 12%, respectively, through Tuesday’s close, according to Dow Jones Market Data.
“ARKK’s outperformance since the start of the latest equity market rally shows how it tends to exhibit supercharged tech returns,” DataTrek co-founder Jessica Rabe wrote in a Wednesday report.
The fund’s top 10 positions include
Coinbase
(COIN),
Roku
(ROKU),
Tesla
(TSLA),
Zoom Video Communications
(ZM),
UiPath
(PATH),
Block
(SQ),
Roblox
(RBLX),
DraftKings
(DKNG),
Twilio
(TWLO), and
Crispr Therapeutics
(CRSP)—several of which Wood discussed with Barron’s over the summer.
“These 10 names make up almost two-thirds of ARKK, so for those readers interested in spicier tech names with which to play a year-end rally, this is a worthwhile list for further research,” Rabe noted.
It has been a stellar 2023 for ARKK, which has returned 37%, compared with the S&P 500’s 17% rise and the Nasdaq’s 35% jump. That is a stark shift from ARKK’s past performance: Last year, it saw a negative return of 67%, and it has posted annualized returns of 0.97% over the past five years, according to Morningstar.
Heading into the holiday season, investors will be waiting to see if tech stocks are indeed the gift that keeps giving.
Write to Emily Dattilo at [email protected]
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