Following a couple of dismal years, Cathie Wood's ARK Innovation ETF is back on top. And she can mostly thank four home runs.
Four stocks in the ARK Innovation portfolio — recent IPO Circle Internet, Robinhood, Tempus AI and Palantir Technologies — are all up 80% or more this year, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and IBD MarketSurge.
That's enough to make ARK Innovation the top-performing actively traded, nongold U.S. diversified ETF this year, up 19.3%, says Morningstar Direct. These huge stock winners this year are enough to counteract the fact that 46% of the ETF's holdings are down this year.
Circle Internet The Big Winner
ARK Innovation is certainly cashing in on its 7.5% weighting in new IPO Circle Internet. Shares are up 750% from the IPO price of $31 a share. That's ARK Innovation's top winner this year.
The chart is bullish. Shares carry an RS Rating of 99. And the company has been profitable for two straight years. That position is paying off big for ARK.
But it's not alone. Trendy online brokerage Robinhood has seen shares jump 105% this year. It's a 4.5% position in the ARK Innovation fund. This chart looks solid, too, albeit extended. The RS Rating is 98 and EPS Rating is 81. Analysts see 17% EPS growth this year.
Two AI Plays
Another two picks are working wonders for ARK Innovation. Tempus AI is up 95% this year. Analysts are bullish on the future of AI. It's a 5.4% position in the ETF. Additionally, defense security firm Palantir is perfectly positioned for the Trump administration. It's up 85% this year, a boon for ARK Innovation's 4.4% position.
Looks like ARK Innovation is back on top.
ARK Innovation's Top Winners This Year
| Company | Ticker | ETF weight | YTD change |
|---|---|---|---|
| Circle Internet Group | CRCL | 7.49% | 749.8% |
| Robinhood Markets | HOOD | 4.49% | 104.9% |
| Tempus AI | TEM | 5.37% | 94.5% |
| Palantir Technologies | PLTR | 4.38% | 85.0% |
