Cathie Wood's Ark Invest Grew Its Portfolio to $15.4 Billion Last Quarter, With Tesla, AMD, and a New SpaceX Stake Making Up About 18% of ARKK Assets. Is Her Concentrated Bet Paying Off?
Cathie Wood has provocative ideas and has delivered some strong returns, but her firm's flagship ETF could be a risky bet for the future.
Cathie Wood's Ark Invest portfolio has reached $15.4 billion in assets under management, according to the company's latest SEC filing. The Ark Innovation ETF (ARKK), which Wood oversees, has seen significant investments in a few tech companies, making up about 18% of its holdings. These include Advanced Micro Devices (AMD), Space Exploration Technologies (SpaceX), and Tesla (TSLA).
While this concentrated bet on these three stocks could yield outsized gains if Wood's bullish outlook on AI, rocket technology, electric vehicles, and robotics turns out to be correct, history shows that ARKK's returns have not consistently outperformed the market. Over the past five years, ARKK has failed to beat the S&P 500 after accounting for its expense ratio, and lost money for the past five years.
For long-term investors looking to minimize risk, The Motley Fool recommends the Vanguard Information Technology ETF (VGT) instead. This low-cost index fund has delivered higher average annual returns of 20.9% compared to ARKK, and charges a much lower expense ratio of 0.09%.
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