Cathie Wood’s Ark Innovation ETF increases holdings in SpaceX following recent price swings and earnings report turbulence.
Ark Investment Management, led by Cathie Wood, purchased $28.1 million of SpaceX shares this week, expanding its position after the stock’s volatile post-earnings period. The move aligns with Wood’s strategy of accumulating high-growth tech stocks during price fluctuations.
The Ark Innovation ETF (ARKK) rose 10.71% year-to-date as of August 21, trailing the S&P 500’s 12.11% gain. While ARKK surged 35.49% in 2023, outperforming the S&P 500’s 17.88% return, its five-year annualized return stands at -6.23%, compared to the S&P 500’s 11.56%.
Wood’s funds have faced criticism for volatility, including a 60% drop in 2022 and nearly $5 billion in investor wealth erosion over the past decade, per Morningstar data.