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Cathie Wood, founder and CEO of Ark Invest, is proving once again that her innovative strategy of investing in disruptive innovations has a lucrative pay-off. Despite losses in 2020, Wood’s flagship Ark Innovation ETF (ARKK) has managed to generate more than $300 million in fees.
Since launching in 2014, Ark Invest has been dedicated to uncovering transformative technologies and investing in them. Their flagship ETF, ARKK, focuses on companies that are investing in cutting-edge technologies like machine learning, artificial intelligence (AI), robotics, and blockchain. Although the ETF has taken a few hits since its inception, the fund has recovered substantially in 2021 and gained about 50% since its inception.
This remarkable performance has enabled Ark Invest to generate more than $300 million in fees since it launched. This puts Ark Invest way ahead of its peers in the ETF space – it has more than five times the amount of fees collected than the second-largest ETF manager, Capital Group.
The fund also has an impressive list of investors, which include institutional investors and private wealth managers. This suggests that large investors are betting on the long-term success of Ark Invest’s approach to disruptive technology investing.
Despite the fund’s success, Wood isn’t losing sight of her investment philosophy. She famously said, “We think of investing in disruptive innovation as spotting the early signs of change and positioning ourselves to benefit from that by making long-term bets.” This strategy has allowed Ark Invest to become one of the most successful ETF managers, despite a fairly volatile markets.
It is no wonder, then, that Cathie Wood has become a household name. With her impressive returns and her commitment to investing in disruptive technologies, she is certainly one to watch.