CandleFocus

Trump 2.0 could boost this Cathie Wood fund—Hint: it’s not ARKK

Author: Content Editor
The recent pullback in the stock market has raised concerns about a potential deeper correction, as seen in the rise of Wall Street's fear gauge, the CBOE VIX index. Momentum stocks have shown signs of faltering, leading to worries that the market strength may be running out. However, the broader picture remains relatively optimistic, with the S&P 500 still up significantly for the year. The rally has been attributed to the "Trump trade," benefiting stocks expected to gain from President-elect Donald Trump's policies. Cathie Wood's ARK Innovation ETF (ARKK) has seen a resurgence, driven by high-growth tech stocks like Tesla. However, another ARK fund, the Next Generation Internet ETF (ARKW), has outperformed ARKK, with significant exposure to sectors benefiting from Trump's policies, such as crypto and defense. ARKW includes holdings in the ARK 21Shares Bitcoin ETF, as well as cryptocurrency-related stocks like Coinbase and Robinhood. Despite recent outflows, ARKW remains a compelling option for those bullish on Trump's policies and their market impact.

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