So far, 2022 has been a rocky year for Cathie Wood’s exchange-traded funds (ETFs). Her flagship fund, the ARK Innovation ETF (NYSEARCA:ARKK) is down more than 50% year-to-date (YTD). Meanwhile, other Cathie Wood funds are posting similar returns. There may be light on the horizon, however.
On June 27, ARKK received eight straight days of inflows totaling $639 million. In addition, the ETF manager remains highly convicted in her top positions, including Tesla (NASDAQ:TSLA) and CRISPR Therapeutics (NASDAQ:CRSP).
Wood’s poor returns are partially due to the Federal Reserve lifting interest rates. Still, the investor believes that “deflationary forces” may cause the Fed to reverse on its plan to raise rates even higher. She notes that the dollar index has moved up by double digits this year, characterizing it as a “total anti-inflationary force.” Wood also says oil has declined by over 20% month-over-month and expects gold to “move below a two-year trading range.”
This week was busy for Ark ETFs, which made several interesting purchases. Let’s get into the details.
5 Top Stocks Cathie Wood Bought This Week
1. Unity Software (U)
Unity Software (NYSE:U) stock plunged more than 20% this week following a slew of updates. First, the company announced a $4.4 billion merger with ironSource (NYSE:IS). After the transaction closes, ironSource will become a wholly-owned subsidiary of the company. Additionally, Unity announced an up to $2.5 billion buyback program as well as a guidance reduction. Now, 2022 revenue is expected to be between $1.3 billion and $1.35 billion. That’s down from the previous estimate of between $1.35 billion and $1.425 billion.
This guidance reduction didn’t deter Wood, however. She purchased 1.04 million shares of U stock through four ETFs.
2. Coinbase (COIN)
ARKK also purchased 90,861 shares of Coinbase (NASDAQ:COIN) this week. After the transaction, COIN stock is now the fund’s ninth-largest holding with an average purchase price of $254.65. This purchase comes after several Coinbase users complained about not being able to withdraw USD to their bank accounts, sparking fears of a liquidity shortage. The crypto brokerage acknowledged the issue and it appears to have since been resolved.
3. Ginkgo Bioworks (DNA)
Ginkgo Bioworks (NYSE:DNA) has been hard-hit since completing its special purpose acquisition company (SPAC) merger. Shares of the biotech company are down more than 60% YTD. However, Wood clearly sees potential for Ginkgo; she purchased over 3.2 million shares of DNA stock this week. Ginkgo is now the 20th-largest holding among all ARK ETFs. Wood’s ETFs own a total of 84.96 million shares, making Ark Invest a top 10 shareholder of the company.
4. Butterfly Network (BFLY)
Butterfly Network (NYSE:BFLY) is one of Wood’s lesser-known purchases from this week. The company’s flagship product, the Butterfly IQ+, is a handheld ultrasound device that must be purchased with a subscription starting at $199 per year. Earlier this year, Butterfly received a $5 million grant from the Bill & Melinda Gates Foundation to supply the device in Sub-Saharan Africa. From July 11 to July 13, Wood purchased 947,340 shares of BFLY stock.
5. ATAI Life Sciences (ATAI)
ATAI Life Sciences (NASDAQ:ATAI) is a clinical-stage biopharma company focused on treating mental health disorders. In addition, the company currently has 17 programs pursuing U.S. Food and Drug Administration (FDA) approval. From July 11 to July 14, the ARK Genomic Revolution ETF (BATS:ARKG) purchased 674,424 shares of ATAI stock. The company is now the 45th-largest holding in the ETF out of 48 total.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.