Smart money isn't always smart, and following it blindly is unlikely to pay off.
ETFs pulled in $38B last week, led by QQQ, VOO, ARKK, ETHA and VCIT as cooling inflation and rate-cut hopes boosted markets.
ARKK's active management fails to generate statistically significant alpha, making its high fees unjustified versus passive alternatives. QQQ, a passive ETF with a lower expense ratio, has outperformed ARKK over the long term and shows mild, occasional outperformance. Given current market conditions and QQQ's strong recovery, I recommend holding QQQ rather than switching to ARKK.
Cathie Wood's ARK ETFs, ARKK and ARKW, roar back with record single-day inflows, flipping 2025 flows from deep red to billions in the black.
In an uncertain market, I stick to five core investing principles: stay the course, specialize, diversify, trust proven experts, and keep some cash. Dividend growth investing (DGI) remains my strategy, with a focus on reliable cash flow compounding and growing dividends to eventually replace labor income. I diversify beyond my real estate core by blending passive DGI ETFs and selecting active ETFs with proven outperformance.
ARKK's performance over the past 3-month period might seem impressive, but it is hardly a reason enough to own the ETF. The ETF still has a long way to go before its risk-adjusted performance is at par with that of the S&P 500. Unfortunately, the drivers behind the recent rally might not last long once we take a closer look into the recent melt-up in equities.
ARKK delivered top performance in 2Q25, driven by aggressive bets on AI and crypto stocks, notably Circle Internet and Tempus AI. Despite recent outflows, strong returns and sector momentum could attract new investor capital and reverse the fund flow picture. ARKK's concentrated portfolio in disruptive sectors like AI, crypto, and EVs offers high upside but carries significant sector risk.
Cathie Wood's ARKK hits a 52-week high after bold biotech moves, signaling renewed momentum in disruptive tech.
ARKK, WGMI, HYDR, URA and CHPS top June's rally as easing trade tensions and dovish Fed signals lift the key sectors.
In June, KDEF surged 21.7% as Korean defense exports gained steam, while PLTM soared 23.2% on platinum's tightening supply.
ARKK soars 23% so far in June, fueled by explosive stock moves and bold bets on AI, nuclear energy and robotaxis.
Cathie Wood's ARK innovations have again started to glow. Last week, most of ARK ETFs, including ARK Innovation ETF ARKK, ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF ARKF surged about 8%.