ARK Fintech Innovation ETF

ARKF

Market cap $1.43B

Cathie Wood, CEO & CIO of ARK Invest, speaks about market optimism, US inflation, the crypto industry and IPOs. Wood speaks with Bloomberg's Katie Greifeld, Eric Balchunas and Scarlet Fu on "Bloomberg ETF IQ".

The stock market has performed very well over the past year. Although it hasn't been without its volatile times, specifically around the president's reciprocal tariff announcements in April, the S&P 500 is up by more than 20% in a year.

Ark Invest CEO Cathie Wood is known for her stock picks over the last decade, handpicking many of the growth stocks that find their way into the company's ETFs.

For investors seeking low-cost exposure and passive income, exchange-traded funds (ETFs) offer an excellent way to get started.

Financial technology, or fintech, was one of the worst performing parts of the stock market in the 2022 bear market and for the roughly two-year period that followed. During the COVID-19 pandemic, the economy turned to online payments, cashless money transfers, and cryptocurrency interest surged.

ARK Fintech Innovation ETF has surged 51% since April, but I am downgrading to hold due to high valuation and looming seasonal headwinds. The ETF's concentrated, high-beta fintech portfolio is risky with a lofty PEG ratio and significant exposure to SMID caps. Technical indicators show ARKF is overextended, trading nearly 50% above its 200-day moving average and facing key resistance.

Ned Davis sees defense, nuclear, digital assets, and artificial intelligence benefiting from the passage of President Donald Trump's One Big, Beautiful Bill.

Financial technology (fintech), broadly speaking, allows the remote delivery of financial services to businesses and individuals through computers or mobile devices. Fintech encompasses everything from smartphone apps to complex blockchain-enabled networks that facilitate financial transactions.

Active ETFs hit a record $1.39T in assets as investors shift from passive strategies amid 2025's volatile market climate. Some of the most-loved U.S.-listed actively-managed ETFs are JEPI and JEPQ.

Bitcoin shows resilience with its relative chart to the S&P 500 nearing all-time highs, despite recent volatility. I upgrade ARK Fintech Innovation ETF (ARKF) to a buy due to its strong recovery and positive crypto trends. ARKF, with a 13.4% EPS growth rate, benefits from bullish seasonal trends and a supportive technical chart.