Did Cathie Wood's Innovation ARKK ETF Whiff On AI? How It Compares To FAANG, Nvidia In 2023
Portfolio Pulse from Chris Katje
Ark Funds may have missed out on the AI boom, as their ETFs have underperformed compared to Nvidia and FAANG stocks in 2023. Despite AI being a major focus for Ark, Nvidia's strong performance had minimal impact on the funds, with Ark selling 65,600 shares of Nvidia after its Q1 earnings report.

May 26, 2023 | 7:24 pm
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NEGATIVE IMPACT
Ark Innovation ETF (ARKK) underperformed compared to Nvidia and FAANG stocks in 2023, with a year-to-date performance of +29.1%.
Ark Innovation ETF (ARKK) has underperformed compared to Nvidia and FAANG stocks in 2023, with a year-to-date performance of +29.1%. This is lower than the performance of AI-themed ETFs like BOTZ, which is up 32.4% year-to-date, and the FAANG stocks, which have seen significant gains in 2023. This indicates that Ark Funds may have missed out on the AI boom, as their ETFs have underperformed compared to Nvidia and FAANG stocks in 2023.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Nvidia's strong Q1 earnings and updated guidance boosted its stock, but had minimal impact on Ark Funds due to their small holdings in the company.
Nvidia's strong Q1 earnings report and updated guidance significantly outperformed analysts' expectations, causing its stock price to soar. However, this had minimal impact on Ark Funds due to their small holdings in the company, and Ark even sold 65,600 shares of Nvidia after the earnings report. This indicates that Ark Funds may have missed out on the AI boom, as their ETFs have underperformed compared to Nvidia and FAANG stocks in 2023.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100