Exchange-traded funds were initially designed to offer a low-cost way to invest in the entire stock market. But there is an ETF revolution going on, and the ETFs of the actively managed investment star Cathie Wood, ARK Invest, are more popular than ever after more than doubling in value in 2020.
Given Wood’s success, smart investors are following the movements of ARK Invest’s ETFs. Below, you’ll learn more about five stocks that received some love – and a good chunk of investment capital – from Wood’s five active ETFs.
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1. Autonomous Technology and ARK Robotics: Intuitive Surgery
ARK Autonomous Technology & Robotics (NYSEMKT: ARKQ) aims to profit from companies that are automated around the world, with actions in areas such as autonomous vehicles, 3-D printing and space exploration. Pioneer in robotic surgical equipment Intuitive Surgical (NASDAQ: ISRG) it is a natural fit for the fund, and on February 12, the ETF bought almost 21,000 shares, making up about 0.4% of the fund’s assets and generating about $ 17 million. The movement continued on an upward trend that led to a total investment of 1.6%.
Intuitive Surgical has been a giant in robotic surgery for a long time, but, until 2020, the company’s shares were largely locked in a waiting pattern. However, while the pandemic has hit sales, the growing prospects for automated healthcare equipment make the stock look more attractive than it did a long time ago. As coronavirus vaccines help the healthcare industry slowly return to normal, now is a good time for Intuitive Surgical to redouble its efforts to increase sales.
2. ARK Genomic Revolution: Regeneron Pharmaceuticals
ARK Genomic Revolution (NYSEMKT: ARKG) focuses on companies that help use genomics for advances in healthcare. Their stakes include actions in the CRISPR niches, molecular diagnostics and bioinformatics, and this week, Regeneron Pharmaceuticals (NASDAQ: REGN) got a lot of interest from ETF. Two purchases on February 8 and 9 added more than 100,000 Regeneron shares to the portfolio, representing more than half a percent of assets and almost $ 50 million. This made Regeneron the fourth most popular stock in the portfolio, with total holdings of more than $ 530 million.
Regeneron had its prospects connected to the COVID-19 pandemic throughout 2020 and early 2021, with its antibody cocktail treatment having some success in fighting the disease. However, Regeneron has a much longer history of promising treatments, and Wood likely sees solid growth opportunities far beyond the effects of the pandemic.
3. ARK Fintech: Ping An Healthcare and Technology
ARK Fintech (NYSEMKT: ARKF) aims to invest in leading companies in financial technology. So it may seem strange to see Ping An Health and Technology (OTC: PANH.F) in a fintech portfolio. But two massive purchases on February 10 and 11 added nearly 2.6 million shares in the Chinese company, representing about 1% of the $ 2 billion in ETF assets.
Ping An’s health services include a customer-oriented platform for obtaining medicines and medical equipment, obtaining physical exams and genetic tests, online consultations and referrals, and health and wellness management. In this sense, Ping An falls into the categories that ARK Fintech follows. Furthermore, Ping An Insurance has a 41% stake, and its focus on health insurance is entirely within the purview of the fintech ETF. With the Chinese market experiencing the same revolution in telemedicine and healthcare technology as the U.S., Ping An’s prospects are intriguing.
4. ARK Next Generation Internet: Shopify
Investors interested in the internet gravitated to ARK Next Generation Internet (NYSEMKT: ARKW), with more than $ 5 billion in assets under management. This week, the fund added the existing positions in the e-commerce facilitator Shopify (NYSE: SHOP). Four purchases from February 8 to 11 added a total of more than 61,000 shares, or nearly $ 90 million. Shopify now accounts for more than 3% of the portfolio, ranking seventh in its holdings.
Shopify’s stock has skyrocketed, but it still has a lot of growth potential ahead of it. The company made it easier for companies of all sizes to establish a presence on the web, and this was instrumental in the pandemic to help companies stay in the market. As you add partners and continue to attract new business to your ecosystem, Shopify should continue to improve its platform and accelerate its expansion to 2021 and beyond.
5. ARK Innovation: Unity Software
Last but not least, ARK Invest’s largest active ETF is ARK Innovation (NYSEMKT: ARKK). It has almost $ 18 billion divided into the four subcategories above, and Wood’s favorite action of the week was Unity software (NYSE: U). The fund bought more than 419,000 shares on February 8, worth more than $ 50 million and representing a third of one percent of the ETF’s total assets. This raised ARK Innovation’s stake in Unity to 1.6%, placing it among the top 25 stakes.
Unity Software helps video game developers with tools on their development platform. Serving more than 1.5 million game creators, more than half of video games on mobile devices, computers and game consoles depended on Unity for their initial build. Given the speed with which the video game industry is growing and evolving, many seem to agree with Wood’s assessment of Unity’s long-term growth prospects.
Can Wood repeat itself in 2021?
It will take a good performance for Wood’s ETFs to double again in 2021. But even if they fall short, the stocks the ARK Invest chief investment officer chooses are worth looking into for investors looking for great stock ideas.