Cathie Wood's Flagship ARK ETF Marks 5-Day Winning Streak — Outperforming Nasdaq, FAANG In May

Zinger Key Points
  • Ark Innovation ETF soared more than 8% thus far in May, snapping five days of consecutive gains.
  • Cathie Wood's flagship fund is up 27%, outperforming the Nasdaq 100.

Cathie Wood's flagship fund Ark Innovation ETF ARKK marked a five-day winning streak on Wednesday for the first time since January, as a lower-than-expected U.S. CPI cemented market expectations of a Fed rate hold in June.

What To Know: Ark Innovation ETF has risen 8.4% so far in May, outperforming other major tech-related benchmarks such as Invesco QQQ Trust QQQ and FAANGs, an acronym that refers to the stocks of five big tech companies: Meta Platforms, Inc. META (formerly known as Facebook), Amazon, Inc. AMZN, Apple, Inc. AAPL, Netflix, Inc. NFLX and Alphabet, Inc. GOOG GOOGL

Chart: ARKK Outperformed Both QQQ And FAANGs This Month

Ark Innovation ETF Rebounded In 2023, But Is Still A Long Way From Historic High

Wood's biggest fund experienced a massive downturn between February 2021 and December 2022, losing up to 80% from peak to trough, as a cocktail of rising inflation and rising interest rates slaughtered high-growth companies in the ARK Innovation ETF. 

In 2023, when several inflation readings came in below expectations and investors anticipated a pause in the Fed's rate hikes in June, followed by future rate reductions, the Ark Innovation ETF began to rally. Since the start of the year, the fund is up 27%. 

Despite the strong performance thus far, Cathie Wood's top fund is still light years away from its all-time high set in February 2021. 

Here are The Five Main Contributors To ARKK's Performance In 2023:
1) Coinbase Global, Inc. 
COIN: up 78% YTD, the crypto company contributed 3.6 percentage points to ARKK's overall performance this year. 

2) Tesla, Inc. TSLA: up 37% YTD, the EV-maker contributed 3.3 percentage points.

3) Draftkings, Inc. DKNG: up 115%, the gaming company contributed 3.2 percentage points. 

4) Shopify, Inc. SHOP: up 83%, the e-commerce company contributed 3.1 percentage points. 

5) Exact Sciences Corp. EXAS: up 60%, the biotech company contributed 2.7 percentage points. 

Read now: Cathie Wood Continues Selling Shopify, Buys $10.3M Worth Of Stock In This Fintech Company

Photo: Benzinga YouTube

Market News and Data brought to you by Benzinga APIs
Posted In: Sector ETFsTechETFsARKark etfsARK InvestARKKCathie WoodCathie Wood ARK ETFs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!