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When you think of exciting investments, exchange traded funds may be the last thing that comes to your mind. But while most ETFs just track indices, the active ETFs offered by fiery investment firm ARK Invest have garnered a lot of attention.
This makes sense when you look at the returns that ARK funds have had recently. The five actively managed ETFs have more than doubled in the past 12 months, with ARK Genomic Revolution FNB (NYSEMKT: ARKG) leader of the peloton and tripling since this period last year. ETF ARK Innovation (NYSEMKT: ARKK) and Next Generation ARK Internet (NEW: ARKW) are not too far behind.
ARKF data by YCharts.
Savvy investors want to know which stocks are being reviewed by Cathie Wood, Director of Investments at ARK Invest. Luckily ARK is leaking all of his moves every day and you can see what he did with only a short delay.
To save you the trouble of having to look on your own, here are three of the stocks that various ARK ETFs have invested more money in over the past week.
1. Opendoor Technologies
Biggest purchase ETF ARK Fintech Innovation (NYSEMKT: ARKF) done last week was Opendoor Technologies (NASDAQ: OPEN). The fund made purchases not once but twice during the week, adding a total of over 406,000 stocks. This increased Opendoor’s share in the fund’s overall assets by almost half a percentage point, giving it a 1.79% weight in the ETF at the end of the week.
Image source: Getty Images.
Opendoor just went public last month through a merger with a special purpose acquisition company led by PSPC pioneer Chamath Palihapitiya, Social Capital Hedosophia Holdings. The company seeks to disrupt the entire real estate market by offering a lightning-fast “iBuyer” alternative to the months-long process of listing a home, receiving offers and waiting months for buyers to get financing and finally close the transaction. Instead, Opendoor can make its own offering in a matter of days in several major markets, and the company hopes to expand to serve other areas as well.
Some are not convinced of Opendoor’s superiority, noting that there is a lot of competition and that the ramp-up before and after the SPAC merger has become final makes the stock expensive. However, ARK Fintech Innovation seems to disagree, and it will be interesting to see if the position continues to expand.
2. Pinterest
ARK Innovation made some big buys during the week, and one of the ETF’s biggest goals was Pinterest (NYSE: PINS). Two purchases added more than 613,000 shares, increasing ARK Innovation’s stake in the social media company by more than a quarter and bringing its allocation to nearly 1%.
Pinterest is just one of many social media companies, and it’s definitely not the biggest. But Pinterest stands out for its positive and supportive user base, defying many stereotypes about the destructive qualities of many social media platforms.
One criticism of Pinterest has been that it hasn’t done as good a job as some of its peers at turning its audience’s attention into cash. Nonetheless, Pinterest plans to boost monetization in the coming year by researching more of its international attendees and using more video content for advertising. The company has to follow a fine line to avoid ruining its positive vibe, but ARK Invest is just one of many investors who think Pinterest can do the job.
3. Skillz
Finally, ARK Next Generation Internet has taken several steps, and one of the most interesting has been to add to its small position in Skillz (NYSE: SKLZ). A big buy of 429,000 shares nearly doubled the ETF’s position in esports mobile gaming platform provider to 0.40% of the portfolio, and it looks like Wood could build a more substantial stake slowly.
Skillz is also newly public via a SPAC suit, and investors are excited about the number of mobile game makers using its platform to market their products. With Skillz getting a share of every trade made by players, the earning possibilities are almost endless.
However, there is still plenty of room for growth, as Skillz only has around one in 1,000 players among its monthly active users. But ARK Invest seems to agree with the company’s strategy of investing heavily in customer acquisition and marketing, and if it can get even a small fraction of global players to its platform. -form, the action could pay off.
Keep an eye on ARK
ARK Invest has definitely tapped into some of the most exciting themes in the market over the past year. It remains to be seen if this success will continue, but one thing is for sure: people are taking notice of the stocks the company’s ETFs choose to invest in.
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