Cathie Wood’s ARK Innovation ETF, also known as ARKK, has been experiencing substantial outperformance in recent times, largely due to significant gains in the technology sector.
According to DataTrek Research, the top holdings of the exchange-traded fund present an excellent opportunity for investors who are looking to capitalize on a potential year-end rally.
Since October 27th, ARKK has achieved an impressive return of 23%. In comparison, the S&P 500 and Nasdaq Composite have seen gains of 9.2% and 12% respectively, as reported by Dow Jones Market Data.
DataTrek co-founder Jessica Rabe highlighted in a recent report that the remarkable outperformance of ARKK during the latest equity market rally demonstrates its ability to deliver exceptional returns within the tech sector.
The fund’s top 10 positions comprise Coinbase (COIN), Roku (ROKU), Tesla (TSLA), Zoom Video Communications (ZM), UiPath (PATH), Block (SQ), Roblox (RBLX), DraftKings (DKNG), Twilio (TWLO), and Crispr Therapeutics (CRSP). These companies were previously discussed by Cathie Wood over the summer.
Rabe emphasized that these 10 holdings make up nearly two-thirds of ARKK’s portfolio. Therefore, investors seeking exposure to more dynamic tech names for a potential year-end rally should explore this list further.
ARKK has had an exceptional year so far, achieving a return of 37%. In contrast, the S&P 500 has risen by 17%, and the Nasdaq has experienced a 35% jump. This stark shift in performance is noteworthy considering that ARKK had negative returns of 67% last year and annualized returns of only 0.97% over the past five years, according to Morningstar.
As we approach the holiday season, investors will be eagerly observing whether tech stocks will continue to present lucrative opportunities.