## Ark Funds Turns 10: A Look Back at Cathie Wood’s Disruptive Innovation ETFs
Ark Funds, the investment firm led by the renowned Cathie Wood, is celebrating a significant milestone. Two of its most prominent actively managed ETFs, Ark Innovation (ARKK) and Ark Genomic Revolution (ARKG), are turning 10 years old. These ETFs have garnered significant attention for their focus on future growth areas driven by innovation, making them a cornerstone of Wood’s investment strategy.
Ark Innovation: A Decade of Disruptive Innovation
Launched on October 31, 2014, Ark Innovation (ARKK) has quickly become Ark Funds’ flagship ETF and the largest of its portfolio, boasting over $5.78 billion in assets under management. ARKK’s core objective is to achieve long-term capital growth by investing in companies that are at the forefront of disruptive innovation, both domestically and internationally.
ARKK’s investment themes span a wide range of cutting-edge technologies, including:
*
Autonomous Mobility:
Self-driving vehicles and related technologies.*
Precision Therapies:
Personalized medicine and advanced medical treatments.*
Next-Gen Cloud:
Emerging cloud computing solutions and platforms.*
Neural Networks:
Artificial intelligence and machine learning advancements.*
Intelligent Devices:
IoT (Internet of Things) and smart devices.*
Digital Wallets:
Cryptocurrency and digital payment systems.*
Digital Assets:
Blockchain technologies and digital currencies.*
Smart Contracts:
Automated agreements and transactions on blockchains.*
Multiomic Technologies:
Integrated approaches to studying biological systems.Top Holdings and Performance
ARKK’s top 10 holdings currently include some of the most prominent names in the technology sector, reflecting its focus on innovation:
1.
Tesla Inc (TSLA):
14.1% of net assets2.
Roku Inc (ROKU):
10.8% of net assets3.
Coinbase Global (COIN):
8.1% of net assets4.
Roblox Corporation (RBLX):
6.2% of net assets5.
Palantir Technologies (PLTR):
5.1% of net assets6.
Robinhood Markets (HOOD):
5.0% of net assets7.
Block Inc (SQ):
4.9% of net assets8.
CRISPR Therapeutics (CRSP):
4.5% of net assets9.
Shopify Inc (SHOP):
3.9% of net assets10.
UiPath Inc (PATH):
2.9% of net assetsSince its inception, ARKK has delivered impressive returns, generating a cumulative gain of 161.4%. However, it’s important to note that this performance trails the 10-year return of the SPDR S&P 500 ETF Trust (SPY), which tracks the broader S&P 500 index.
Ark Genomic Revolution: Investing in the Future of Healthcare
Ark Genomic Revolution (ARKG), also launched on October 31, 2014, focuses on investments in companies that are driving the genomics revolution. This ETF currently manages $1.33 billion in assets and seeks to capitalize on the transformative potential of advancements in genetic research and technologies.
ARKG’s investment themes include:
*
Precision Therapies:
Personalized medicine based on genetic data.*
Multiomic Technologies:
Integrated analysis of various biological data types.*
Programmable Biology:
Engineering biological systems for therapeutic purposes.*
Neural Networks:
AI applications in drug discovery and personalized medicine.*
Next-Gen Cloud:
Cloud-based platforms for genomic data analysis.*
Adaptive Robotics:
Robotics and automation in healthcare.Top Holdings and Performance
ARKG’s top 10 holdings are primarily focused on biotechnology and healthcare companies:
1.
Twist Biosciences (TWST):
8.7% of net assets2.
Recursion Pharmaceuticals (RXRX):
7.0% of net assets3.
CRISPR Therapeutics (CRSP):
7.0% of net assets4.
CareDx (CDNA):
5.1% of net assets5.
Adaptive Biotechnologies (ADPT):
4.7% of net assets6.
Veracyte Inc (VYCT):
4.6% of net assets7.
Ionis Pharmaceuticals (IONS):
4.3% of net assets8.
Nurix Therapeutics (NRIX):
4.1% of net assets9.
Natera Inc (NTRA):
3.8% of net assets10.
10x Genomics (TXG):
3.8% of net assetsSince its inception, ARKG has generated a total return of 38.9%, although it has also lagged the performance of the SPDR S&P 500 ETF Trust (SPY) over the past decade.
Cathie Wood’s Bold Investment Strategy
Cathie Wood’s investment philosophy is rooted in identifying companies that are poised for significant long-term growth through disruptive innovations. This often involves investing in companies that are not yet profitable or are facing significant market challenges. Her approach has earned her both accolades and criticism, but there is no denying the impact she has had on the investment landscape.
The Future of Ark Funds
While Ark Funds’ performance has been more muted in recent years, they continue to be closely watched by investors, particularly those interested in the potential of innovation to reshape industries. Cathie Wood remains a vocal advocate for her investment themes, and her insights continue to influence the investment community. Whether Ark Funds can recapture their early success remains to be seen, but their focus on disruptive innovation will likely continue to attract investors seeking exposure to the cutting-edge technologies that are shaping the future.
