Ark Invest’s Cathie Wood mentioned this week that traders in her agency’s flagship Ark Innovation ETF (ARKK) stand to revenue given the artificial intelligence boom.
“We’re prepared for prime time,” she advised Bob Pisani on CNBC’s “ETF Edge” on Monday. “The dream [of AI] is not; it is a actuality.”
Ark’s Innovation fund, which focuses on disruptive applied sciences comparable to AI, has gained 17% this 12 months as of Thursday’s shut. The fund’s rise has coincided with the boom in AI-driven mega-cap tech, although has underperformed the Invesco QQQ Trust, which has risen 35% in the identical interval.
The ETF remains to be greater than 76% off its all-time closing excessive hit on Feb. 12, 2021.
Wood acknowledged the Innovation ETF’s declines over the previous two years, however remained optimistic about the potential for AI-linked shares in the fund. “Our confidence, if something, has elevated due to what’s taking place with artificial intelligence,” she mentioned.
Still, Wood cautioned that traders have to be discerning with their AI bets. She referred to as out the “Magnificent Seven” mega-cap tech shares, with the exception of Tesla, the ETF’s top holding.
“Many folks really feel snug they’re on the proper horses,” she mentioned. “We clearly agree with [Tesla]. We are usually not so positive relating to the others. We suppose AI goes to be extremely disruptive.”
Wood added that speedy advances in AI interfaces could usher in a brand new era of business leaders. For that cause, she urged that the Ark Innovation ETF was a wager on the way forward for AI.
“We suppose that the shock aspect on the market, as our corporations take off, harnessing these new platforms, that the aspect of shock goes to be vital,” she mentioned. “We will earn our manner again into portfolios.”
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