Cathie Wood's ARK Invest has one of the best investment portfolios in the world, with investments in a plethora of major and rising companies. It has six actively managed ETFs and two indexed ETFs. Here are some of the best ARK Invest purchases of 2021.
Investors often pay close attention to ARK Invest's moves, as many of its funds are actively managed. This is in contrast to indexed ETFs, which match the performance of a market index such as the S&P 500. Active ETFs are designed to perform better than those indexes.
Among ARK's actively managed funds are the ARK Innovation (ARKK), Autonomous Technology & Robotics (ARKQ), Next Generation Internet (ARKW), Genomix Revolution (ARKG), Fintech Innovation (ARKF), and Space Exploration & Innovation (ARKX) ETFs. The funds' holdings include big names such as Tesla, Roku, and Zoom.
ARK's two indexed funds are the 3D Printing (PRNT) and Israel Innovative Technology (IZRL) ETFs. Well-known Monday.com, a cloud-based platform that allows companies to create their own applications and work management software, is one IZRL holding.
Shopify Inc. (SHOP) has stayed strong
Shopify has benefited from the increasing demand for e-commerce platforms, especially with retailers having to limit or eliminate in-person business during the COVID-19 shutdown. At the end of the second quarter, Shopify reportedly had the second-largest share (or 23 percent) of the e-commerce platform market in the U.S.
Since 2016, Shopify stock has grown consistently. From 2020 to 2021, its price increased by over 150 percent, and this year, the stock has already risen by over 40 percent. In Apr. 2021, Cathie Wood told BNN Bloomberg that Shopify could be just as big as Amazon, saying, “we know Shopify is a very expensive stock but because of these viral networking opportunities around commerce, we think it's the most exciting one probably out there."
In Oct. 2020, Shopify partnered with TikTok to allow Shopify users to market their business through the social media platform. In Aug. 2021, Shopify expanded that partnership, and now TikTok users will be able to shop directly from Shopify merchants through the TikTok app.
Coinbase has little competition among other crypto stocks
Coinbase became the first crypto exchange to be publicly traded when its stock was listed on the Nasdaq in Apr. 2021. Since then, ARK Invest has reportedly bought over four million COIN shares, or over $1 billion in shares. Wood has publicly stated that although she expects tremendous volatility for the stock since it involves crypto, she’s very bullish on its long-term potential.
ARK Invest is still heavily invested in Tesla
Tesla is one of the most popular stocks in the world, and ARK Invest reportedly owns over three million TSLA shares (or over $2 billion). Wood has been fond of Tesla for years now, and even said in Mar. 2021 that she expects the stock to reach $3,000 in 2025, which would be about 400 percent higher than its current price. With promising innovations such as improved chips and humanoid robots, Tesla has a lot of room to expand.