Cathie Wood's ARK Innovation ETF Holds Two Elon Musk Companies as Top Positions
ARK Innovation ETF (ARKK), managed by Cathie Wood, has two of its top holdings in companies led by Elon Musk: Tesla and SpaceX. Together, these positions account for approximately 16% of the fund’s assets under management ($5.6 billion). On September 4, both stocks declined—Tesla fell 5.92%, while SpaceX dropped 1.2%. The declines were partly attributed to an unimpressive Cybercab robotaxi launch and a regulatory audit by U.S. safety regulators affecting Tesla. The fund’s performance is heavily influenced by its top holdings due to their significant weightings, with the two Musk-linked stocks alone contributing more than half of ARKK's 1.06% drop on that day. Despite this concentration risk, the ETF has returned about 15% over the past year compared to a roughly 19% gain for the S&P 500. SpaceX recently went public in June and reported strong Q2 revenue growth of 92%, driven largely by its Starlink satellite internet service. However, both Tesla and SpaceX trade at high valuations—Tesla is valued at about 155 times next year’s expected earnings.
Topics: ARK Innovation ETF Elon Musk investment fund performance robotaxi launch Tesla