2 of Cathie Wood's ARK Funds Are Having the Best Weeks in Months -- Barrons.com

Dow Jones08-17

By Angela Palumbo

ARK Innovation ETF and ARK Fintech Innovation ETF are both on a tear this week.

Both funds are operated by ARK Invest -- the investment-management company headed by stock picker Cathie Wood -- and have lagged far behind the S&P 500 this year.

The ARK Fintech Innovation ETF is up 6.4% this week, on pace for its best run since the week ended Dec. 1, when it rose 9.3%, according to Dow Jones Market Data. The ARK Innovation ETF has gained 6.1% this week, the biggest gain since the week ended Feb. 9, when it rose 6.3%.

The largest holding in the ARK Innovation exchange-traded fund is Tesla, which makes up about 14% of the ETF. Shares of the EV maker rose 6.3% on Thursday alone, after better-than-expected economic data eased concern that the U.S. could face a recession. The stock has gained 7.7% this week.

The second largest holding in the fund is Roku. Stock in the maker of streaming devices has risen 6.8% this week and was on pace for its best week since June 28. Roku reported stronger-than-expected financial results for its fiscal second quarter earlier this month.

Both of these stocks are down so far in 2024, while the S&P 500 is up 16%. The ARK Innovation ETF has dropped 16% this year.

The ARK Fintech Innovation ETF is up just 0.4% in 2024. The fund's largest holding is Shopify, which makes up 9.5% of the ETF. Shares of the e-commerce platform have gained 7.8% this week, boosted by strong second-quarter financial results posted on Aug. 7.

Coinbase Global makes up 9% of the ARK Fintech Innovation fund. The stock has not only had a strong week, but a solid year. Shares of the cryptocurrency trading platform have risen 16% in 2024 and 3.1% this week. An increase in the price of Bitcoin this year, and stronger-than-expected second-quarter revenue reported on Aug. 1, have helped push the stock higher.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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August 16, 2024 13:45 ET (17:45 GMT)

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