Ark Invest, as Cathie Wood puts it, is "all about finding the next big thing." And she's already found a few.
Tesla and Shopify, two of Wood's best picks, have generated massive returns for Ark investors. Ark Innovation ETF, the company's flagship fund, has returned 440 percent in the last five years, surpassing the Dow, S& P 500, and Nasdaq.
While she may have sold some shares of growth businesses such as Tesla during the current bull market, she is still investing in new ones.
Here's a quick look at three Ark Invest holdings that you might want to consider investing in.
Teladoc Health (TDOC)
Teladoc Health is a renowned telemedicine company in the United States. It has a proven track record of increasing revenue and improving margins.
The company, unsurprisingly, benefited from the unique environment created by COVID-19. During the peak of the epidemic, when most non-life-threatening in-office medical care was put on hold, telehealth adoption surged.
Teladoc's income climbed by 98 percent to $1.09 billion in 2020, while total visits increased by 156 percent.
Management anticipates a top-line of $2.015 billion to $2.025 billion in 2021.
Teladoc is Ark Innovation ETF's second-largest holding, contributing for 6.4 percent of the fund's weight.
If you're not ready to make a large investment in a few significant stocks, you can always start with digital nickels and dimes to establish a diverse portfolio.
Zoom Video Communications (ZM)
One of the most popular stay-at-home stocks, Zoom has been on a rollercoaster ride.
At the start of 2020, shares of the video communications company were trading in the $60s. By October 2020, they had risen to almost $560 per share but had since lost more than half of their value.
Wood had no qualms about purchasing the dip. Ark Invest purchased roughly 225,000 shares of Zoom earlier this month. With a portfolio weighting of 4.95 percent, Wood's flagship ETF now owns 3.82 million shares of the company.
Total revenue increased by 35% year over year to $1.05 billion in the most recent fiscal quarter. It also generated an adjusted net income of $338.4 million and a free cash flow of $374.8 million.
Despite this year's drop, zoom is still trading at far over $200 per share. However, you can still own a piece of the corporation by using popular software that allows you to buy fractions of shares for as little as $1.
Roku (ROKU)
Several winners in the tech world have emerged as a result of the secular trend of on-demand video streaming. Roku's stock has surged in value by more than 700% in the last five years.
Youtube, Netflix, and Disney+ are among the streaming services available on the platform. Roku also has its ad-supported channels with third-party content that is licensed.
In the third quarter, the corporation added 1.3 million new active accounts. Total revenue increased by 51% year on year to $680 million.
There are, of course, more significant ways to profit from these tremendous streaming tailwinds. Netflix added 4.4 million new customers in the third quarter, while Disney+ now has 118.1 million subscribers globally.
On the other hand, Wood is plainly optimistic about Roku, which, unlike Disney, is a "clean" approach to play the trend, with the stock accounting for 5.1 percent of ARKK's weight.
Significant potential without the whiplash
Wood has benefited from the fund's focus on disruptive innovation, but the most intriguing tickers can also be the most unpredictable.
Stocks aren't the only asset type that has exploded in value in recent years.
Consider fine art as an alternative to stocks if you want to invest in something more stable with high return potential.
According to the Citi Global Art Market chart, contemporary art has outpaced the S&P 500 by a whopping 174 percent over the last 25 years.
Investing in art by Banksy and Andy Warhol, for example, used to be reserved for the ultra-wealthy, such as Wood. But, like Jeff Bezos and Bill Gates, you can now invest in great artworks through a new investing site.
