TLDR
- Cathie Wood’s Ark Innovation ETF is down 9.91% year-to-date, underperforming major indexes
- Wood recently purchased $23.7 million worth of Airbnb stock around earnings report
- Ark ETF invested $5.46 million in GitLab and $38.41 million in Taiwan Semiconductor
- Wood’s funds sold $37.53 million of Meta Platforms stock in a portfolio reshuffling
- Despite Wood’s 153% gain in 2020, her long-term performance has lagged the market considerably
Cathie Wood, the high-profile chief of Ark Investment Management, has made several major stock purchases in recent weeks, continuing her strategy of investing in technology and innovation despite her flagship fund’s underperformance this year.
Wood’s Ark Innovation ETF (ARKK) is down 9.91% year-to-date as of May 2, compared to smaller declines in the S&P 500 and Nasdaq. The fund has experienced net outflows of $2.31 billion over the past year through April 29, according to ETF research firm VettaFi.
Here are the current largest holdings in Cathie Wood and Ark Invest's Ark Innovation ETF $ARKK pic.twitter.com/QZRtJeVV9W
— ETF Tracker (@TheETFTracker) April 20, 2025
Despite these challenges, Wood continues to make large investments across various sectors. Most recently, her funds purchased nearly $40 million worth of Taiwan Semiconductor Manufacturing Co Ltd (TSM) stock, acquiring 197,776 shares split between Ark’s flagship funds.
In another major move, Ark bought 106,061 shares of software development platform GitLab (GTLB), representing an investment of approximately $5.46 million. This purchase aligns with Wood’s focus on high-growth technology companies with disruptive potential.
Wood has also shown renewed interest in Airbnb (ABNB), purchasing about $23.7 million worth of shares in recent days. She bought 60,068 shares before Airbnb’s first-quarter earnings report and added another 49,560 shares after results were announced.
Performance Concerns
The long-term performance of Wood’s funds has raised questions among investors. While the Ark Innovation ETF posted an eye-catching 153% gain in 2020, its longer-term returns have failed to keep pace with the broader market.
As of May 2, the fund had delivered an annualized three-year return of just 1.16% and a five-year return of 0.31%. By comparison, the S&P 500 index posted a three-year annualized return of 12.75% and a five-year return of 16.75% during the same period.
A Morningstar analysis released earlier this year was even more critical, suggesting that the Ark Innovation ETF had wiped out $7 billion in investor wealth over the 10 years ending in 2024. This made it the third-biggest “wealth destroyer” among mutual funds and ETFs in the analyst’s ranking.
Wood’s investment strategy focuses on emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. While these companies may have potential to reshape industries, their volatility leads to major fluctuations in her funds’ values.
While reshaping her portfolio with new purchases, Wood has also been selling some high-profile holdings. Ark recently divested 58,607 shares of Meta Platforms (META) for a total of $37.53 million, and sold 57,013 shares of CoreWeave (CRWV), resulting in $4.58 million.
The fund manager has also expressed concerns about potential economic headwinds. Wood recently warned about the impact of Trump’s proposed tariffs, suggesting they could lead to a bear market or recession if not handled carefully.
“Trump wants to be one of the greatest presidents ever… he’s not going to get there by throwing the economy into a recession and the stock market into a bear market,” she said, while expressing hope that negotiations could ease tensions.
Airbnb, one of Wood’s recent large purchases, reported first-quarter results on May 1 that were mostly in line with expectations. Revenue came in at $2.27 billion, up 6% year-over-year, slightly ahead of analyst expectations of $2.26 billion.
However, the company’s earnings per share fell 42% from a year ago, and its second-quarter revenue forecast came in below Wall Street projections. Airbnb cited “relatively softer results” in the U.S. market, which it attributed to “broader economic uncertainties.”
In smaller transactions, Ark purchased 16,057 shares of urban air mobility company Blade Air Mobility (BLDE) for $56,520, and 90,233 shares of neighborhood networking platform Nextdoor Holdings (KIND) valued at $130,837.
The most recent trading activity from Ark Investment Management occurred on Monday, May 19, 2025, with the Taiwan Semiconductor purchase representing the largest single investment of the day.
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