When you think of exciting investments, exchange traded funds may be the last thing on your mind. But while most ETFs only track indices, the active ETFs offered by the ardent investment company ARK Invest have received a lot of attention.
It makes sense when you look at the return that ARK’s funds have recently earned. All five of the actively managed ETFs have more than doubled in the last 12 months, including ARK Genomic Revolution ETF (NYSEMKT: ARKG) led the package and tripled since this time last year. ARK Innovation ETF (NYSEMKT: ARKK) and ARK Next Generation Internet (NEW: ARKW) is not that far behind.
Smart investors want to know which stocks ARK Invest Chief Investment Officer Cathie Wood is looking at. Fortunately, ARK reveals all the moves every day, and you can see what it’s done with just a short delay.
To save you the hassle of seeing yourself, below are three of the stocks that various ARK ETFs have invested more money over the past week.
1. Opendoor Technologies
The biggest purchase that ARK Fintech Innovation ETF (NYSEMKT: ARKF) made last week was Opendoor Technologies (NASDAQ: OPEN). The fund did not buy once, but twice during the week, adding a total of more than 406,000 shares. This increased Opendoor’s share of the fund’s total assets by almost half a percentage point, giving it a 1.79% weight in the ETF for the week.
Opendoor was just announced last month through a merger with a specialty acquisition company run by SPAC pioneer Chamath Palihapitiya’s Social Capital Hedosophia Holdings. The company wants to disrupt the entire real estate market by offering a lightning-fast “iBuyer” alternative to the month-long process of listing a home, taking offers and waiting months for buyers to receive financing and finally terminate the agreement. Instead, Opendoor can come up with its own offer within a few days in several large markets, and the company hopes to grow to serve other areas as well.
Some are not convinced of Opendoor’s superiority, noting that they have plenty of competition, and that the run – up both before and after the SPAC merger was finalized, makes the stock look expensive. However, ARK Fintech Innovation seems to disagree, and it will be interesting to see if the position grows.
ARK Innovation made some major purchases during the week, and one of the biggest goals for the ETF was Pinterest (NYSE: PINS). Two acquisitions added more than 613,000 shares, which increased ARK Innovation’s shares in the social media company by more than a quarter and increased the allotment to almost 1%.
Pinterest is just one of many social media companies, and it is certainly not the biggest. But Pinterest stands out because of its positive and supportive user base and defies many of the stereotypes about the destructive qualities that many social media have.
One criticism of Pinterest has been that it has not done as good a job as any of its peers in turning the public’s attention into cold hard cash. Pinterest still plans to increase revenue generation in the coming year by looking for more from its international entrants and using more video content for advertising. The company must follow a fine line to avoid ruining the positive mood, but ARK Invest is just one of many investors who believe Pinterest can get the job done.
Finally, ARK Next Generation Internet made several moves, and one of the most interesting was to add its small position in Skillz (NYSE: SKLZ). A large purchase of 429,000 shares almost doubled ETF’s position in esports mobile gaming platform provider to 0.40% of the portfolio, and it appears that Wood can slowly build a larger stake.
Skillz has also recently gone public through a SPAC combination, and investors are excited about the number of mobile players using the platform to bring their products to market. With Skillz getting a cut of every transaction that players make, the revenue opportunities are almost endless.
There is still plenty of room for growth, as Skillz only has about one in 1,000 players among the 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 bring even a small fraction of the world’s players to the platform, the stock can pay off.
Keep an eye on ARK
ARK Invest has definitely taken advantage of some of the most exciting topics in the market over the past year. Whether that success continues remains to be seen, but one thing is certain: People notice the stocks that the company’s ETFs choose to invest in.