This unstoppable Cathie Wood ETF is destroying the S&P 500 this year. Is it a purchase before 2026?

  • Cathie Wood’s Ark Investment Management operates technology -oriented fund (ETF) portfolio.

  • Flagman Ark Innovation ETFs invest in disruptive technologies such as autonomous vehicles and artificial intelligence.

  • This year, the Ark Innovation ETF increases by 38%, but investors who buy it have a great deal of tolerance to volatility.

  • 10 shares we like more than Ark ETF Trust – Ark Innovation ETF ›

Cathie Wood is the founder and CEO of Ark Investment Management, which operates a dozen funding (ETF) on the stock exchange, focused on innovative technologies. Electric vehicles, cryptocurrency, e -commerce, social media, robotics, autonomous mobility and artificial intelligence (AI) are just a few areas of the arch.

The firm’s sample fund is Ark Innovation ETF (Freshly taken: sheets)which is intended for companies working with disruptive products and services in many technology industry segments. 2025 S&P 500 (Snigex: ^GSPC)But can this acceleration last until 2026?

Image Source: Getty Images.

ETFs can store hundreds or even thousands of individual shares, but the Ark Innovation ETF currently has just 43. The main companies develop intellectual devices, self -driving cars, financial technology, health care solutions and more.

The top 10 arktf stake packages make up 57.9% of its total portfolio value, making them a major impact on its activities:

Hand/Stock

ETF weight

Hand/Stock

ETF weight

1 Tesla

11.32%

6. Shopify

5.02%

2. Coinbase

6.28%

7. CRISPR therapy

4.9%

3. The year

6.26%

8. Robinhood markets

4.6%

4. The pace you have

6.16%

9. Palantir technology

4.26%

5. Roblox

5.78%

10. Advanced micro devices

3.32%

Data source: Ark Investment Management. The weight of the portfolio is accurate since 2025. September 12th. And can be changed.

On paper, Tesla (Nasdaq: Tsla) There are ideal Ark Innovation ETF stocks. The company produces electric vehicles, but it also becomes a leader of independent cars, robotics, clean energy and AI leader. The Ark believes that Tesla shares up to 2029 Can reach $ 2,600 per share, which is 550% upside down where it trades when I write it.

Palantir technology (Nasdaq: bride) There is another innovation power plant. Its Gotham and foundry platforms are used to help companies and governments analyze large quantities of data so that they can produce effective insights. The company’s revenue growth has accelerated in the last few quarters, only in 2025. 2025 Increased her stock to 128%.

Then there is Advanced micro devices (NASDAQ: AMD)created a list of graphics processing facilities (GPU) for data centers to compete NvidiaIn the industry, the leading AI chips. However, it also supplies the world’s best AI chips for personal computers that could become the main growth market in the future.

Beyond its ten, Ark Innovation ETF occupies small positions of Nvidia and other Titans, such as AmazonIs it Meta platformsand Production of Taiwan semiconductors;

The Ark Innovation ETF has created a composite annual annual annual return from the fact that it was founded in 2014, narrowly bypassing the S&P 500, which increased by an average of 13.3% per year during the same period.

However, ark eTFs are far away More volatile-it reached the highest point in 2021. Through a pandemic sentiment in the technology sector and by 2022. At the end of the year, as much as 80%decreased. It is currently partially increasing, partly due to its strong profits this year, but it still remains 50% less than 2021 record. On the other hand, the S&P 500 is currently selling the best level of all time.

Therefore, it is difficult to present a strong forecast for the upcoming ETF performance based solely this year. It is also an actively managed fund and it is impossible to predict the next step of the Cathie Wood. In my opinion, Tesla is one of the most overestimated reserves in the technology space, opening the door to a sudden potential amendment at some point in the future that could weigh the ark ETF. But Wood and her team can turn around and sell shares tomorrow or even buy more!

It is also worth emphasizing that Ark Etf is quite expensive. Its cost ratio is 0.75%, so the $ 10,000 investment would take an annual fee of $ 75. For certain perspectives Vanguard S&P 500 ETF The cost ratio is 0.03%, so the same investment would only take an annual fee of $ 3.

Remember that the S&P 500 has eventually not exceeded the ark ETF, so investors who want to avoid special volatility may be satisfied that you have the Vanguard Index fund.

However, investors wishing to buy an Ark Innovation ETF in 2026 should control their expectations. Redirecting to 13.9% (given the long -term average) in the New Year is certainly more realistic than expecting another market compression of 38%.

Before buying an Ark ETF trust stock – Ark Innovation ETF, consider this:

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Anthony di Pysio has no position in any of the above shares. Motley Fool has positions and recommends advanced micro devices, Amazon, CrisPR Therapeutics, Meta Platforms, NVIDIA, Palantir Technologies, Roblox, Roku, Shopify, Taiwan Semiconductor, Tesla and Vanguard S & P 500 ETF. The Motley fool recommends the Coinbase Global. The Motley fool has a disclosure policy.

This unstoppable Cathie Wood ETF is destroying the S&P 500 this year. Is it a purchase before 2026? initially released by The Motley Fool

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