Cathie Wood’s 2023 was a roaring comeback after the Ark Invest fleet got tossed by 2022’s bear market. Her flagship Ark Innovation ETF (ARKK) soared nearly 70%, but one of the family jewels truly blasted off: the Ark Fintech Innovation ETF (ARKF). This fintech rocket climbed a staggering 93%, fueled by the resurgence of sectors left battered and bruised in the previous year. So, what propelled ARKF’s stratospheric ascent, and can it mint even more millionaire investors in 2024?
Major Holdings Take Flight
While ARKF and ARKK shared similar trajectories, several of ARKF’s key holdings were absolute rockets in 2023, giving it an extra edge. The biggest boost came from the crypto sector’s fiery revival. ARKF’s top dog, Coinbase (COIN), saw its stock multiply by five as Bitcoin danced around $45,000. Investors weren’t just giddy about potential price hikes, but also the volume surge expected if the SEC finally greenlights spot Bitcoin ETFs.
DraftKings (DKNG) was another major contributor, tripling its value thanks to its relentless expansion into new sports betting markets. Investors also anticipate further legalization wins in states like Texas and Georgia, adding more fuel to DKNG’s fire.
Shopify (SHOP) and UiPath (PATH) joined the party, with SHOP doubling on the back of surprising consumer resilience, and PATH attracting AI-focused investors with its robotic process automation magic.
2024: More Fuel for the Fire?
ARKF’s future success hinges on Wood’s crystal ball remaining focused. Her bullish conviction in Coinbase rests on Bitcoin reaching a dizzying $1.5 million within six years, further propelling COIN. Similarly, she sees broader e-commerce trends and the growing popularity of sports betting pushing Shopify and DraftKings even higher.
But Wood doesn’t just stick to familiar faces. Zillow Group (ZG) is currently a minor player in ARKF, but a potential interest rate drop in 2024 could trigger a housing market rebound, sending ZG soaring alongside it.
A Million-Dollar Question
While replicating ARKF’s 2023 performance might be a fantasy, the long-term potential of its holdings is hard to ignore. Wood’s optimism isn’t just blind faith; it’s rooted in the disruptive potential of the companies she champions. Dollar-cost averaging into ARKF might not make you a millionaire overnight, but for investors with a stomach for volatility and a long-term vision, it could be a ticket to the moon – or at least a comfortable stratospheric cruise.