Tesla Slides

The company released its quarterly numbers at the end of January, missing again on earnings per share and revenue. The stock dropped over 12% on the day.

So why did Cathie Wood scoop up 377,000 shares of the stock for her ARK Innovation ETF (NYSE:ARKK)?

Business As Usual

This is the investing guru's strategy. Wood still believes in the long-term vision of the company, so buying after a large dip means she is getting a discount.

Wood constantly rebalances her fund's holdings by selling off overperforming stocks and buying underperforming ones. This is the strategy that has helped ARKK return 22% on the year.

Eyes On The Horizon

Max View 

Traders bullish on Wood and her fund can buy the ETF directly or for those who want to further maximize their view, leveraged funds can help. For example, the award-winning AXS 2X Innovation ETF (NASDAQ:TARK) aims to return twice the daily return of ARKK. 

And for traders not buying what Wood is selling, AXS offers an option for the bears. The AXS Short Innovation Daily ETF (NASDAQ:SARK), which aims to return the inverse performance of ARKK, can be an attractive option.

TARK was just awarded Best ETF Launch at Benzinga's 2023 Fintech Awards. The innovative fund was launched in May of 2022 and the care and skill with which the fund is operated is clear.

Photo by Neo Tan on Unsplash.