Cathie Wood's Ark Innovation ETF Sold Nearly $14 Million of Tesla Stock

The ARK Innovation ETF, managed by Cathie Wood, recently disclosed the sale of approximately $14 million worth of Tesla Inc. shares, marking the ETF's first divestment from the electric vehicle (EV) manufacturer in September.

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As of the latest data available, Tesla remains the most substantial holding within the ARK Innovation ETF (ARKK), aligning with the fund's overarching investment theme of "disruptive innovation." The ETF's allocation to Tesla stands at 11.38% as of Thursday, far exceeding the second-largest holding, Roku Inc., which represents 8.08% of the fund's weighting.

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In Thursday's morning trading, Tesla's stock (TSLA) saw a modest gain of 0.2%. Over the course of the week, Tesla's shares have surged by 9.4%, extending a four-week winning streak that has amounted to a remarkable 26.2% increase in value.

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The ARK Innovation ETF reported the sale of 51,155 Tesla shares on Wednesday, valued at approximately $13.88 million based on the closing price of $271.30.

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This transaction follows a series of divestitures in August, totaling 114,799 Tesla shares. The last of these sales, comprising 1,884 shares, was executed on August 15 and, based on the closing price of $258.08 on August 31, amounted to a valuation of $29.63 million.

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It's common for investment funds to adjust their holdings, not necessarily to decrease their stake, but to maintain a specific weighting as a stock's price appreciates.

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In a separate development, the ARK Innovation ETF also disclosed the sale of 178,672 shares of DraftKings Inc., valued at approximately $5.49 million as of Wednesday's closing price. DraftKings, a digital sports-entertainment and gaming company, ranks as the ETF's eighth-largest holding, representing 4.1% of its portfolio.

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Conversely, the ETF expanded its position by acquiring 458,265 shares of Roblox Corp., valued at $12.71 million based on Wednesday's closing price. Roblox, an online gaming services company, occupies the 17th position in the ETF's holdings, accounting for 2.87% of its allocation.

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The ARK Innovation ETF exhibited a 0.9% gain in Thursday's morning trading session, bringing its year-to-date performance to a notable 40.3%, significantly surpassing the S&P 500's year-to-date advance of 16.9%.

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