ARK Invest Sells Robinhood, Buys Snowflake as Portfolio Rotates, June 21

Cathie Wood’s ARK Invest sold $26.7 million of Robinhood Markets (HOOD) on June 18 despite the stock rallying 36% in one month. Simultaneously, Wood initiated a $52 million position in Snowflake, a tech stock up 40% recently. The moves signal portfolio rotation as ARK Innovation ETF (ARKK) trails the market year-to-date.

Why ARK Dumped Robinhood Despite Its Rally

HOOD shares surged 36% in the past month, supported by IPO underwriting expansion, strong trading activity, and favorable regulatory changes. ARK Innovation ETF sold 275,572 shares worth $26.7 million on June 18. Wall Street remains bullish, with Deutsche Bank and Argus raising price targets. Wood’s sale appears driven by profit-taking rather than negative fundamentals.

Snowflake Purchase Signals Growth Focus

Wood bought $52 million of Snowflake shares in the past week as the stock rallied over 40% in one month. The purchase reflects ARK’s focus on high-growth tech companies across AI, blockchain, biomedical technology, and robotics. Wood believes these businesses have strong growth potential despite their volatility.

ARKK Lags Market Despite 2025 Outperformance

ARK Innovation ETF gained 35.49% in 2025, beating the S&P 500’s 17.88% return. However, ARKK is up only 2.98% year-to-date through June 18, trailing the S&P 500’s 9.57% gain. Over five years, ARKK delivered a negative 7.42% annualized return versus the S&P 500’s positive 12.48% return. From 2014 to 2024, ARKK destroyed $7 billion in investor wealth, making it the third-biggest wealth destroyer among mutual funds and ETFs.

Wood’s Track Record of Volatility

ARK Innovation ETF delivered a 153% return in 2020, establishing Wood’s reputation. However, the fund tumbled more than 60% in 2022 during bearish markets. Morningstar analyst Bella Albrecht noted that two of Wood’s funds ranked among the worst-performing ETFs in Q1 2026. Wood’s investment style brings outsized gains and losses, creating significant swings in long-term performance.

Final Thoughts

ARK’s portfolio rotation reflects Wood’s tactical approach to rebalancing winners and adding growth exposure. With ARKK trailing the S&P 500 by 6.59 percentage points year-to-date, investors should monitor whether Wood’s high-volatility strategy can recover its five-year underperformance.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.