Cathie Wood
Courtesy Photograph
Cathie Wood’s ARK Investment Management is revving up to launch its second new U.S. exchange-traded fund in almost three years this week.
The ARK Transparency ETF (ticker: CTRU) follows the Transparency Index (TRANSPCY), which tracks the stock-price movements of the 100 most transparent companies globally. I’s ARK’s ninth ETF and begins trading Wednesday on the Cboe BZX Exchange.
“ARK believes transparent companies have less friction which could lead to exponential growth opportunities,” the company wrote in an investment factsheet.
The Transparency Index’s top five holdings as of Oct. 31 include Cloudflare ( NET), Bloom Energy (BE), Enphase Energy ( ENPH), Tesla ( TSLA), and Spotify ( SPOT), according to ARK.
Wood became a high-profile manager after her innovation-focused portfolios surged in 2020, with the investment firm’s flagship ETF, the ARK Innovation ETF (ARKK), delivering a 153% return that year. She became especially well-known for her bullish call on Tesla—a call she has since reiterated, saying she believed the stock could reach $3,000 by 2025.
The investment products have since struggled to outpace last year’s gains, trading mostly sideways in 2021. The Innovation ETF is down nearly 25% this year, and the worst performer — the ARK Genomic Revolution ETF (ARKG) —is down 31%.
Only two of ARK’s ETFs have risen year to date: the Israel Innovative Technology ETF (IZRL) and the ARK Autonomous Technology and Robotics ETF (ARKQ).
Write to Sabrina Escobar at [email protected]
