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Cathie Wood's ARKK ETF is Back: Buy It or Not?

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  • (0:30) - Is Cathie Wood Making A Comeback and Should You Be Jumping In?
  • (6:30) - Breaking Down ARKK Recent Performance and It’s Holdings
  • (21:45) - Episode Roundup: TSLA, SHOP, PLTR, TEM, COIN, HOOD, CRCL
  • podcast@zacks.com

 

Welcome to Episode #456 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is going solo to talk about ARK Invest’s flagship ETF, the Ark Innovation ETF (ARKK - Free Report) . ARK Invest is led by CEO Cathie Wood who became popular during the pandemic when ARKK gained 152% in 2020.

Money flowed into ARKK in early 2021, but the ETF ended up falling 23.4% that year.

ARKK has struggled to get back into the green over the last 5 years. However, in 2025, investment in some hot growth stocks has propelled ARKK up 27.6% year-to-date.

Is ARKK back?

Should investors consider buying it, or not?

4 of ARKK’s Top Holdings

1. Tesla, Inc. (TSLA - Free Report)

Tesla is ARKK’s largest holding at 10.3% of the portfolio. Cathie Wood has always made her bet on Tesla the cornerstone of ARKK.

But Tesla shares are actually down 20.7% year-to-date. It’s still not cheap, with a forward P/E of 195.4.

It has a Zacks Rank of #4 (Sell).

If you want to own a concentrated position in Tesla, is ARKK the ETF for you?

2. Palantir Technologies Inc. (PLTR - Free Report)

Palantir is a Top 10 position in ARKK at 4.53% of the portfolio. It’s been one of the hottest stocks on Wall Street this year. Shares of Palantir are up 106.5% year-to-date.

Palantir fits into the portfolio which is filled with high growth stocks as earnings are expected to rise 58.5% this year. It’s a Zacks #2 (Buy) stock.

If you want to own Palantir and Tesla, should you be a buyer of ARKK?

3. Robinhood Markets, Inc. (HOOD - Free Report)

Robinhood Markets is in the top 10 of ARKK holdings at 4.28% of the portfolio. It has busted out to new all-time highs this year. Shares of Robinhood are up 185.3% year-to-date.

Earnings are expected to soar 42.2% this year. Robinhood is a Zacks Rank #1 (Strong Buy) stock, the highest Zacks recommendation.

Did Cathie make the right call by investing in Robinhood?

4. Tempus AI, Inc. (TEM - Free Report)

Tempus AI is ARKK’s big bet on the AI Revolution. It’s 5.66% of the portfolio.

Tempus AI went public in 2024. Shares are up 127% year-to-date. It is expected to see negative earnings this year, with a loss of $0.70, but earnings are expected to grow 55.7%.

Tempus AI is a Zacks Rank #2 (Buy) stock.

If you want to own Tempus AI, along with Palantir, Robinhood, Tesla and others, should you be buying ARKK?

What Else Do You Need to Know About the ARK Innovation ETF?

Tune into this week’s podcast to find out.

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