A staggering return rate of 55%! "Sister Wood" takes a gamble and far outperforms the market with these US stocks
"Wood Sister" Cathie Wood's ARK Innovation ETF has once again outperformed, with a return rate of 55.4% this year. Among them, Coinbase, Twist Bioscience, Roku, and Block stocks have risen by more than 70% from this year's low point, especially Coinbase, which accounts for 10% of the portfolio. The investment portfolio of ARK Innovation ETF has shifted towards soaring stocks, rebounding strongly by 42% from the low point on October 27th. This has made ARK Innovation ETF surpass Fidelity Blue Chip Growth Company to become the company with the highest annual return rate.
Zhitong App has learned that Cathie Wood, also known as "Wood Sister," has once again outperformed with her ARK Innovation ETF, surpassing Fidelity Blue Chip Growth ETF (FBCG) and the S&P 500 index. She owes much of her success to a massive speculative stock selection. Analysis of S&P Global Market Intelligence and MarketSmith data shows that four stocks in the ARK Innovation ETF, including Coinbase (COIN.US), Twist Bioscience (TWST.US), Roku (ROKU.US), and Square (SQ.US), have risen by over 70% since the low point of October 27th.
However, it is Coinbase alone that holds a whopping 10% of the ARK portfolio, enough to turn the tide. This is the largest single bet in the ETF, approximately three times the typical weight of the portfolio. According to Morningstar data, the total return of the ARK Innovation ETF this year is 55.4%, making it the top-performing diversified ETF in the United States. It has also surpassed its biggest competitor, Fidelity Blue Chip Growth, to become the company with the highest annual return. Fidelity Blue Chip Growth has a return rate of 51.9%.
The strong rebound of the ARK Innovation ETF has also surpassed the S&P 500 index. How did the ARK Innovation ETF reclaim its top position? After all, just a month ago, it fell out of the top ten performing diversified US ETFs. This is thanks to a strong rebound of 42% from the low point on October 27th.
Since then, the ARK Innovation ETF's portfolio has shifted towards soaring stocks. Of the ETF's 32 positions, 30 have risen since that low point. During this period, 24 stocks in the ARK Innovation ETF portfolio have seen gains of over 15.5%. This is significant because it surpasses the performance of the Invesco QQQ ETF, which has been challenging the ARK Innovation ETF for the champion title throughout the year.
As investors became concerned about rising interest rates, cryptocurrencies became a place of decline. However, the subsequent surge in cryptocurrency prices has driven the rise in related company stocks. Fortunately, ARK Invest invested in Coinbase. The gains from Coinbase have also propelled the ARK Innovation ETF.
The stock price of this cryptocurrency management company has risen by over 97% since October, but it is not included in the S&P 500 index. This makes it the best-performing stock in the ARK Innovation ETF portfolio and the stock with the largest position. Despite Coinbase's nearly 300% surge this year, ARK Innovation ETF still made significant investments in it.
Another big winner for ARK Innovation ETF that emerged from the slump is Twist Bioscience, although its importance to the portfolio is far less than Coinbase. The company is involved in the DNA-based drug revolution and its stock price has soared by 87% this year. However, its weight in the ARK Innovation ETF portfolio is only 1.2%. Meanwhile, streaming video service provider Roku continues to earn Wood's praise. Its stock price has risen by 79% from its October low and has already gained 148% this year. It accounts for 8.4% of the ARK Innovation ETF portfolio, making it an important player in the rebound process.
It is equally important to note that there are still a few weeks left until the last trade of this year. Other ETFs still have the potential to take the lead. But for now, Wood has won the competition for the best diversified ETF in the United States.
