What’s in ARKK? A Look at Cathie Wood’s Top Innovation ETF Picks

Cathie Wood of ARK Invest has long excited investors with her daring strategy toward disruptive innovation. Her flagship fund, the ARK Innovation ETF (ARKK), targets individuals hoping to profit from companies that are transforming the world.

In a recent Yahoo Finance segment, Stocks in Translation host Jared Blikre breaks down ARKK’s key investments from 2020 to 2025, highlighting how Wood’s strategy has evolved – from the explosive highs of 2020 to the ambitious possibilities of 2025.

Here’s a closer look at the fund’s journey and what’s driving it today.

The 2020 Boom: A Stellar Lineup

ARKK saw a 153% increase in 2020, accompanied by a list of disruptive companies. While Teladoc Health (TDOC) profited from the telemedicine trend, Tesla (TSLA) was the leader in the electric vehicle (EV) market.

Roku (ROKU) drove the streaming revolution, Block (SQ) transformed digital payments, and Shopify (SHOP) empowered a new era of e-commerce.

These holdings showcased Wood’s sharp instinct for companies redefining their industries, making ARKK a favorite among growth-focused investors.

2025’s New Bets: Crypto, Metaverse, and AI

Looking at 2025, ARKK will explore emerging trends. Nevertheless, Elon Musk’s Tesla continues to lead, but Wood has broadened her attention to Gitlab (GTLB) for AI and data analysis, Roblox (RBLX) for the metaverse, and Coinbase Global (COIN) for cryptocurrency investment.

This change supports Wood’s ultimate purpose of rapid expansion and emphasizes her beliefs regarding blockchain, virtual realities, and AI as the upcoming major developments.

Performance Swings

ARKK’s performance has been uneven. Following its peak in 2020, it fell 67% in 2022 due to increasing rates, with assets dropping from $59 billion in 2021 to $11.1 billion by mid-2024.

A recovery in 2023 resulted in an 82% increase, surpassing the S&P 500’s 53%. As of May 2025, ARKK has risen only 1% year-to-date, underperforming the market but picking up momentum since April, assisted by stocks such as Palantir.

High Risk, High Conviction

Critics, including Morningstar, point to ARKK’s $14.3 billion loss in investor wealth over the past decade, citing its volatility.

Still, Wood’s early wins, like Tesla and Bitcoin, highlight her long-term vision. ARKK remains a high-risk, high-reward play on the future of innovation.