How to Invest like Cathie Wood
Cathie Wood is the CEO and chief investment officer of ARK Invest, which runs three of the highest-returning stock ETFs of the last three years.
The The ARK Innovation ETF (ARKK) fund's huge gain in 2020 resulted from big stock success stories in cutting-edge tech areas: DNA sequencing, robotics, artificial intelligence, energy storage and blockchain technology. The ARKK surged more than 152% in 2020, handily beating the Nasdaq's hefty 43.6% return. Other ARK ETFs include Autonomous Technology & Robotics (ARKQ), Next Generation Internet (ARKW), Genomic Revolution (ARKG), Fintech Innovation (ARKF) and the recently debuted Space Exploration and Innovation (ARKX).
Genomic Revolution's goal is to invest in companies that focus on enhancing quality of life through technological, scientific, and genomics advancements. That includes areas like molecular diagnostics, informatics, and targeted therapeutics. Among the stocks that play the most prominent role in the fund are Teladoc Health (NYSE:TDOC), Regeneron Pharmaceuticals (NASDAQ: REGN), and CRISPR Therapeutics (NASDAQ: CRSP). Those who like the prospects of genomics and other biotech-related advances will appreciate the value this ETF brings to the table.
Next Generation Internet concentrates on companies trying to use the internet and other shared technology to produce benefits for people and businesses. That includes cloud-computing, cybersecurity, e-commerce, big data, and artificial intelligence companies, as well as social platforms, blockchain, and mobile technology businesses. Tesla (NASDAQ:TSLA) has a commanding position in this ETF's portfolio, but you'll also find companies like Roku (NASDAQ: ROKU) and Square (NYSE: SQ) among its holdings.
Autonomous Technology & Robotics invests in companies involved in autonomous transportation, robotics, 3-D printing, energy storage, and space exploration. Tesla makes up more than 11% of the fund's holdings, but you'll also find some lesser-known companies like 3-D printing specialist Materialise (NASDAQ: MTLS) and geographic information systems specialist Trimble (NASDAQ: TRMB).
Fintech innovation include tech-enabled products and services that change the way the financial industry operates. That includes various payment platforms and innovators on the transactional side, as well as new financial intermediaries and blockchain-technology developers. Square is the biggest holding, but companies like real estate site Zillow (NASDAQ: Z) and Latin American e-commerce giant MercadoLibre (NASDAQ: MELI) are also among top holdings.
Pick your own Wood favorites
For investors willing to do their own homework, the beauty of the active ETF framework is that Wood makes her picks public every day on the ARK Invest website and through email updates. You only lose a few hours in knowing exactly what holdings each active ETF owns and what changes have been made on any given day.
