By Zoe, Melody
ARK Investment has recently become a huge player in the ETF industry due to its wildly optimistic price target for Tesla. Its founder Catherine Wood is even called 'female Buffett'.
However, her investment preference is different from Buffett's. Wood advocates investment in transformational technologies, which she describes as "disruptive innovation", unlike Buffet, who rarely touches tech industries.
ARK currently has 6 actively managed innovation ETFs:
$ARK Autonomous Technology & Robotics ETF(ARKQ.US)$
$ARK Next Generation Internet ETF(ARKW.US)$
$ARK Genomic Revolution ETF(ARKG.US)$
$ARK Fintech Innovation ETF(ARKF.US)$
$ARK Space Exploration & Innovation ETF(ARKX.US)$
The performance of these funds is amazing. ARKK, the most well-known product, has an average annualized return of nearly 40% over the past five years. Moreover, all five funds have risen more than 80% in the past year. All of them have outperformed the S&P 500 ETF (SPY) and the NASDAQ 100 Index ETF (QQQ).
Among ARK's 6 actively managed innovation ETFs, only ARKF holds $Apple Inc(AAPL.US)$. In the past six trading days, ARKF sold 63.68% of its Apple holdings, around 399,600 shares.
As one of Cathie Wood's top picks, shares of $Baidu Inc(BIDU.US)$ were also sold on the downtrend. ARKK, ARKQ, and ARKW sold 73.4%, 5.81%, and 99.39 % respectively of their Baidu holdings, totaling 3,088,300 shares.
The top three stocks on the list of lastest trades were:
$Baidu Inc(BIDU.US)$ started investing in robo-taxi technology as early as 2013. It now plans to spend $7.7 billion over the next five years developing smart-car technology via its newly established unit Jidu Auto.
Baidu launched its paid driverless taxi service (named Apollo Go robotaxi ) on May 2, making it the first company to commercialize autonomous driving operations in China. The company said that its Apollo Go robotaxi service has carried more than 210,000 passengers in three cities across China and aims to expand to 30 cities in the next three years.
$Apple Inc(AAPL.US)$ According to Bloomberg, ARK Investment sold 30.4% of what it held in Apple on Monday. Apple announced on Monday that it granted $45 million to Corning to help the glassmaker expand manufacturing capacity and to fund research and development for display materials for the iPhone, Apple Watch, and iPad.
$Opendoor Technologies Inc(OPEN.US)$ is an online company for transacting in residential real estate. It makes instant cash offers on homes through an online process, makes repairs on the properties it purchases, and relists them for sale. It also provides mobile application-based home buying services along with financing. It will report Q1 2021 financial results for the period ended March 31, 2021, following the close of the market on Tuesday, May 11, 2021.
Please do not blindly follow ARK's trades. This is to provide you with a list of quality companies worth looking at. It is always smart to do your own due diligence before investing!
Comment(3)
Sell ARKK
who cares what ARK is buying or selling.... *yawn*
I suppose Baidu is worth a look partly because Wood started a pos :) Notably, the journey is marked many ups and down similar to what we have seen in Tesla. I feel Chinese prefer to own a Baidu EV than a Tesla because of patriotism. Tesla stock has suffered a dip, one of the key reasons is the pull back of its China dev plans. I’m waiting to observe what Wood are response or recovery actions (average down, stop loss, say something or nothing).
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