Wood’s funds had a short-lived boost after Trump won the presidency last November, but those gains didn’t last. Her flagship fund, the Ark Innovation ETF (ARKK) , is down 19.9% year-to-date as of April 22, while the S&P 500 and the Nasdaq Composite lost 10.1% and 15.6% during the same period, respectively.
Opinions on Wood vary. She is a visionary to her supporters with a remarkable 153% return in 2020. However, her longer-term performance has raised doubts about her aggressive, opportunistic approach.
As of April 22, Ark Innovation ETF, with $5 billion under management, has delivered an annualized three-year return of negative 5.90% and a five-year return of negative 2.09%.
In comparison, the S&P 500 index has a three-year annualized return of 9.04% and a five-year return of 15.33%.
The Ark Innovation ETF has seen a net outflow of $2.08 billion over the past 12 months through April 21, according to ETF research firm VettaFi.Image source: Marco Bello/Getty Images
Cathie Wood’s investment strategy explained
Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology and robotics.
Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' values.
Over the 10 years ending in 2024, the Ark Innovation ETF erased $7 billion in shareholder wealth, according to a recent analysis by Morningstar’s Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in the ranking.
Cathie Wood on Trump’s tariffs
Wood recently questioned Trump’s tariffs during the "In The Know with Cathie Wood” channel.
"Things do feel a bit chaotic out there and the markets are convulsing as a result. There's a lot of uncertainty," she said.
Wood warned that if Trump’s tariff plan isn’t managed carefully, it could trigger a bear market or even a recession. Still, she’s hopeful things will calm down as the negotiations move forward.
“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.
Not all investors share Wood's optimism. The Ark Innovation ETF has seen a net outflow of $2.08 billion over the past 12 months through April 21, according to ETF research firm VettaFi.
Cathie Wood buys $3.2 million of AI chip stocks
On April 22, ARK’s autonomous tech ETF (ARKQ) added to its semiconductor holdings, buying 11,000 shares of Nvidia (NVDA) valued at $1.09 million and 24,800 shares of Advanced Micro Devices (AMD) valued at $2.14 million.
Last week, AMD and Nvidia said they expect rising costs from the Trump administration’s new export curbs on AI chips to China, adding pressure to their already tumbling share prices amid market sell-offs.
The new rules target chips like AMD’s MI308 and Nvidia’s H20, which were designed to follow earlier trade restrictions but still allow business in China.
AMD expects up to $800 million in charges from the change, while Nvidia estimates a $5.5 billion hit.
Bank of America lowered its price targets on AMD and Nvidia after the shipment ban. The firm lowered AMD’s target to $105 from $110, keeping a neutral rating. It cut Nvidia’s stock price target to $150 from $160 while maintaining a buy rating.
The firm expects the ban to reduce AMD’s 2026 sales and earnings by about 3% to 4%, and Nvidia’s by 4% to 5%. Still, it believes Nvidia’s China exposure is “generally de-risked” and sees recent volatility as a buying opportunity.
Year-to-date, Nvidia and AMD stocks are down 26.4% and 28.6%, respectively.
Cathie Wood buys $2.5 million of Robinhood stock
Last week, on April 16, Wood’s Ark Innovation ETF bought 60,266 shares of Robinhood Markets Inc (HOOD) , which is valued at roughly $2.54 million today.
The purchase came after the stock tumbled 7.8% the previous day, following Fed Chair Jerome Powell's comments that rattled investor sentiment.
Wood last bought Robinhood shares between March 28 and April 3, picking up 332,077 shares worth roughly 14 million over five consecutive trading days. The buy came as the stock dipped from its February peak of $65 amid broader market volatility.
Robinhood is known for its commission-free trading platform. It generates revenue through various streams, including payment for order flow (PFOF), interest earned on customer cash balances, margin lending, and subscription services.
As of 2024, the company reported having 25.2 million funded customers and managing $193 billion in assets under custody.
In early April, Morgan Stanley downgraded Robinhood to equal weight from overweight with a price target of $40, down 56% from $90, according to thefly.com.
The firm cited a more challenging macro backdrop and growing demand for risk hedging, warning that weaker retail engagement could weigh on Robinhood’s trading revenue and prompting it to lower its EPS forecasts.
Wood has shown strong interest in Robinhood since its 2021 IPO, making it one of her largest positions in her portfolio.
As of April 22, she held $209.1 million worth of Robinhood shares, accounting for 4.55% of the ARK Innovation ETF and ranking as the fund’s eighth-biggest holding.
