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 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 is one of America's most-watched tech investors, known for her extreme bullishness on Bitcoin and disruptive future technologies like robotics and artificial intelligence (AI). According to her company's most recent 13F SEC filing, as of the second quarter, Cathie Wood's Ark Invest portfolio had a total of $15.4 billion of assets under management.
But what do you get when you invest with Wood? Her firm's flagship exchange-traded fund (ETF), the Ark Innovation ETF (ARKK +1.35%), is making some rather top-heavy bets on just a few tech companies. As of Oct. 19, a significant weighting of the ARKK fund's total assets was invested in just these three stocks: Advanced Micro Devices (AMD -0.61%), Space Exploration Technologies (SPCX -0.11%), and Tesla (TSLA +1.53%).
Let's look at how much Cathie Wood's ARKK fund is investing in AMD, SPCX, and TSLA -- and whether this well-known tech ETF is likely to pay off for long-term investors.
ARKK: High concentration in AMD, SPCX, and TSLA
According to the Ark Innovation ETF top holdings as of Oct. 19, here's how much ARKK has invested in these three tech stocks:
Market Value ($) of ARKK Invest's Holdings
Advanced Micro Devices
About 1.75% of the ARKK fund assets are in Advanced Micro Devices, a semiconductor stock that is helping to power the AI data center boom. Another roughly 6.4% is in SpaceX, and an even larger 9.7% is invested in Tesla -- a total of 16.2% of this tech ETF's funds are in Elon Musk's companies. Add in AMD, and you have about 18% of ARKK's total weighting.
How ARKK compares to the best tech ETFs
Averytin News Financial update.