Cathie Wood’s Ark Innovation ETF buys shares of a surging tech stock, extending gains amid broader market outperformance in 2025.
Ark Investment Management CEO Cathie Wood purchased $22.8 million of a megacap tech stock following a 14.8% gain over the past five days. The move aligns with Wood’s strategy of adding to high-growth positions during rallies, despite volatility risks.
The Ark Innovation ETF (ARKK) has returned 35.49% in 2025, outperforming the S&P 500’s 17.88% gain. However, the fund’s long-term performance remains under pressure, with a five-year annualized return of -8.42% compared to the S&P 500’s 11.63%.
Wood’s focus on disruptive innovation has led to significant swings, including a 153% return in 2020 and a 60% drop in 2022. Since 2014, the ETF has erased $7 billion in investor wealth, per Morningstar data.