Cathie Wood's ARK Innovation ETF Hits New 52-Week Low: Here Are The Top 5 Holdings In The Flagship Fund

The new year offers a performance reset for fund managers. Ark Invest's Cathie Wood is surely looking to climb out of the hole her flagship fund, ARK Innovation ETF ARKK, tumbled in 2021, but the Innovation ETF just keeps digging deeper. 

ARK's Innovation fund hit a new 52-week low on Friday when it fell below the $65 level. It's now down about 60% from its all-time high and it's already approaching a 30% decline in the first month of the year.

Despite its dramatic underperformance over the last year or so, the ARK Innovation ETF is still up about 60% over a three-year period and more than 210% over a five-year period.

The longer-term gains can be largely attributed to the outperformance of some of Wood's biggest positions. Here is a look at the top 5 holdings in the ARK Innovation ETF:

Tesla Inc TSLA 

• Weighting: 8.07%

• 52-Week Range: $539.49 - $1,243.49

• Current Price: $818.63

Wood may be most well-known for her early and consistent admiration of Tesla. A few months ago, the ARK Invest founder and CEO said her expectations for the stock continue to increase with Tesla's market share. Her base case is $3,000 per share, which Tesla CEO Elon Musk agreed with, contingent upon the company's ability to "execute really well." Still, Wood has been trimming her Tesla position and moving money into more beaten-down stocks in recent weeks. 

Related Link: Cathie Wood Continues Booking Profit In Tesla As Stock Shoots Up, Loads Up On These 2 Stocks Instead

Zoom Video Communications Inc ZM

• Weighting: 6.51%

• 52-Week Range: $136.16 - $451.71

• Current Price: $140.42

For the first time in decades, the communications system of the world is going to be replaced, according to the Ark Invest founder and CEO. "Many people think of Zoom simply as a video chat service—it is not. It is becoming a unified communication system," Wood said in a CNBC interview at the end of November. She describes Zoom as one of the most important communications companies to come along in decades. Zoom shares are down nearly 50% over a one-year period.

Related Link: Why Cathie Wood Continues To Buy Zoom Video's Stock As It Falls

Teladoc Health Inc TDOC

• Weighting: 6.5%

• 52-Week Range: $66.83 - $308

• Current Price: $68.51

Teladoc has been cut in half since its investor day in November. Multiple analyst firms lowered price targets on the stock following slowing membership growth expectations. Teladoc is now down more than 70% over a one-year period and nearly 55% in just the last three months, but that isn't stopping Wood from buying. "Innovation stocks seem to have entered deep value territory," Wood said in a December blog post. She was consistently loading shares of the virtual health company at the end of 2021. 

Roku Inc ROKU

• Weighting: 6.43%

• 52-Week Range: $139.47 - $490.76

• Current Price: $146.69

Roku is the fourth-largest holding in the ARK Innovation ETF. Wood anticipates an accelerated transition from cable television to streaming television. She thinks Roku will be at the forefront of that transition, acting as the operating system for streaming TV. In May, Wood told Benzinga she expects Roku and Amazon.com Inc AMZN to "take the lion’s share of the market." She has already increased her Roku stake in 2022 with the stock near 52-week lows. 

Coinbase Global Inc COIN

• Weighting: 5.15%

• 52-Week Range: $162.51 - $429.54

• Current Price: $173.11

During the SALT conference in September, Wood reiterated her bullish stance on crypto and predicted that the world's oldest cryptocurrency, Bitcoin BTC/USD, would exceed $500,000 by 2025. The outlook is based on the anticipation of accelerated crypto adoption from institutions and large companies. Coinbase is the leading cryptocurrency exchange platform in the United States. The company made its public debut in April and is widely regarded as an excellent way to play increased crypto adoption. 

See Also: Is Coinbase The 'Most Obvious Play In The Stock Market Right Now'?

All of Ark Invest's top holdings are near 52-week lows with the exception of Tesla. Wood has continued to increase her position in many of her top holdings, even as they continue to fall. 

Just yesterday, Wood began buying more Tesla shares following the stock’s recent decline. A lot of the top stocks in the flagship fund are held in other ARK Invest ETFs as well. 

Related Link: Cathie Wood Buys $28M In Tesla Shares As Stock Crashes, Ending Months-Long Profit Booking Spree

The Ark Invest founder and CEO has repeatedly reaffirmed her expectations for significant price appreciation in the innovation space over a five-year period. 

Photo: courtesy of Tesla.