3 Cathie Wood ETFs To Buy On Weakness

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Cathie Wood has generated huge profits from her investments in industry-disruptive stocks over the past year. Although current market volatility has shaken some investors’ confidence in this class of stocks, we think the long-term growth prospects of the target industries of ARK Innovation (ARKK), ARK Next Generation Internet (ARKW), and ARK Fintech Innovation (ARKF) should enable these ETFs to deliver significant returns over the long term.

Renowned investor Cathie Wood is the founder and CEO of the world’s largest actively traded ETF management company, Ark Investment Management LLC. Ark’s ETFs have been some of the best performing ETFs in 2020, driven by Wood’s bets on “disruptive innovation” in the burgeoning electric vehicles (EV) and biotech industries.

However, investors’ current focus on outdoor stocks that are benefiting from surging reflation trades has caused Wood’s ETFs to decline over the past couple of months. Nevertheless, we think Wood’s strategic investment bets on companies with explosive growth potential are likely to reap substantial returns long term.

Therefore, we expect currently sagging  ETFs ARK Innovation ETF, ARK Next Generation Internet ETF, and ARK Fintech Innovation ETF to deliver solid returns over the long run.

ARKK shares were trading at $116.48 per share on Friday afternoon, up $0.08 (+0.07%). Year-to-date, ARKK has declined -6.43%, versus a 16.16% rise in the benchmark S&P 500 index during the same period.

ARK Innovation ETF

In pursuit of long-term capital growth, ARKK invests primarily in domestic and foreign equity securities of companies that are relevant to the fund’s investment theme of disruptive innovation. Its investments in foreign equity securities can be in developed and emerging markets. ARKK has $22.13 billion in assets under management. The ETF’s major holdings include Tesla, Inc. (TSLA), Roku, Inc. (ROKU), and Teladoc Health, Inc. (TDOC).

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