With ARK becoming an ETF industry heavyweight, watching what Cathie Wood and company are doing with their funds has become something of a sport. Since most of the ARK ETFs are actively managed and disclose their holdings on a daily basis, a lot of investors are starting to track the fund's daily moves in order to get a sense of where the next hot stocks might be at.
I guess that's what happens when you start generating consistent triple digit annualized returns!
People are even developing apps and websites designed to track the daily changes in the ARK ETFs. There's even ARK merchandise you can buy, which might be a first for the fund industry.
I came across one such site lately at arktrack.com. It essentially does what it says, accumulates the daily holding information for the company's big five ETFs - the ARK Innovation ETF (ARKK), the ARK Autonomous Technology & Robotics ETF (ARKQ), the ARK Next Generation Internet ETF (ARKW), the ARK Genomics Revolution ETF (ARKG) and the ARK Fintech Innovation ETF (ARKF).
Using the ARK Track website, I wanted to see which brand new positions ARKK, easily the company's largest ETF, has added thus far in 2021. With so much money flowing into the ARK ETFs right now, most positions have either grown via rising share prices or have been added to periodically. Looking at new positions, however, could yield some clues to where Wood and her team think the markets are headed.
And there are definitely some trends we can pick up on. Spoiler alert: she's big on genomics and biotech.
Let's run down the 8 new stocks that have been added to ARK so far this year.
10x Genomics (TXG)
TXG is a U.S.-based biotech company that specializes in the design and manufacture of gene sequencing technology.
This stock is the largest of ARKK's newest holdings, but at just 1% of assets it still doesn't crack the fund's top 30 holdings (nor will any of the other stocks on this list). ETF Database shows that roughly 30% of ARKK's assets are categorized as either health services or health technology, so the fund is no stranger to investing in this space.
Regeneron Pharmaceuticals (REGN)
REGN is one of the big mega-cap biotechs that develops and manufactures drugs for various diseases and ailments.
Regeneron just had a solid earnings beat, but it's the company's involvement in the COVID space that could pay dividends. Its antibody cocktail has shown to neutralize some variants of the COVID-19 strain in recent testing.
Paccar is one of the largest heavy duty truck manufacturers in the world, including the production of vehicles under the Peterbilt and Kenworth names.
This is an interesting outlier compared to the rest of the tech and healthcare heavy nature of the portfolio. It's tough to get into the minds of ARKK's research team, but this could be a play on the broader economic recovery and the increased demand for shipping.
Novartis AG (NVS)
Novartis is another pharmaceutical company. This company's biggest news lately is its agreement with Pfizer to help produce its COVID-19 vaccine.
Snap is the popular social media platform.
Social media stocks, in general, have been a bit of a mixed bag. Facebook, of course, has done well, but the likes of Snap and Twitter have been more middling. It's worth noting that Snap has more than doubled in just the past few months, so it's definitely riding a wave of momentum. Revenue growth should be strong, but recent earnings guidance hasn't really inspired confidence.
Teradyne is heavily tied to the chip space as the automated test equipment it produces are used for semiconductors as well as wireless products, data storage and electronics systems.
The semiconductor space has been hot for a while now. The Philadelphia Semiconductor Index is up nearly 150% since the March bear market low. Teradyne has tripled during the same period, but ARK clearly sees more upside ahead.
Fate Therapeutics (FATE)
And we're back to biotechs with FATE, a company which specializes in cancer immunotherapies and stem cell research.
Not much to say here that hasn't been said already about the other biotechs already listed, but it does confirm that ARK seems to be a heavy believer in this sector going forward.
Beam Therapeutics (BEAM)
Yet another biotech, but this one works in gene sequencing, CRISPR and the creation of genetic medicines.