Wall Street has a new star.
Cathie Wood, who operates exchange traded funds for Ark Investment Management, is proving so successful that retail investors have nicknamed her “Money Tree.”
Ark’s exchange-traded fund assets under management crossed $50 billion U.S. this week, up from $3.6 billion U.S. at this time last year. In 2021 alone, investors have funneled almost $11 billion U.S. in Wood’s family of ETFs. Her ARK Innovation ETF (NYSE Arca:ARKK) has gained 19% already this year, on top of 149% in 2020.
The new record underscores the flood of money pouring into thematic products, tracking topics such as genomics and fintech, as retail traders put money to work in funds with relatable narratives. Wood’s eye-popping returns catch the pros’ attention on Wall Street, while her approachable persona attracts retail investors.
Ark recently launched a line of merchandise. Offerings include T-shirts that say “Truth Wins Out” and baseball caps with “Stay Innovative” on them.
Critics warn that Ark ETFs could face headwinds, since the funds are so heavily exposed to technology companies that saw tremendous gains during the pandemic lockdowns. As the economy reopens and a broad market rotation takes hold, tech stocks could fall.
Still, Cathie Wood’s name recognition is only growing, and her stamp of approval is enough to move stock prices. Her inclusion of DraftKings in the ARK Next Generation Internet ETF boosted the sports-betting company’s shares 8.6% earlier this week.
