Cathie Wood is the founder and CEO of Ark Invest. Her firm has risen to prominence for its actively managed exchange-traded funds (ETFs) that focus on disruptive innovation. Despite the success of some of her ETFs, especially in the early years, it’s hard to assert that Wood has been correct about innovation stocks. Ark Invest has destroyed more than $14 billion in wealth over the past decade. 

Wood’s Ark Invest portfolio has provided negative 16% returns over the past 12 months. That’s especially concerning given the performance of the S&P 500 over the same period, up nearly 25%. 

The performance of Ark Invest is less a condemnation of innovation and more so a condemnation of Cathie Wood’s investment prowess. Innovation has produced AI that is responsible for so much of the strength throughout markets today. Nevertheless, Wood’s style of innovation investing should prompt investors to consider safer choices that are less dependent on innovation overall. 

Coca-Cola (KO) 

Coca-Cola (NYSE:KO) continues to be an all-weather stock that performs well almost regardless of market dynamics. It is one of the least volatile mega-cap stocks with a beta of 0.59. It’s also a known consumer staple and a defensive stalwart that provides safety when the broader market enters periodic turmoil.

Coca-Cola, though, isn’t simply a boring brand pumping out the same cash cow products year after year. There is innovation occurring within the company. Step foot into a convenience store anywhere globally and you will instantly recognize the investment Coca-Cola makes in R&D. The company is constantly experimenting with new flavors and packaging while expanding into new emerging markets.

All of that continued tweaking of the product mix is made possible by high margins on core products. Coca-Cola’s invaluable brand drives premium prices that make everything possible. That includes a strong dividend for shareholders which is one of the primary reasons to consider investing. 

Alphabet (GOOG,GOOGL)

Alphabet (NASDAQ:GOOG,GOOGL) is certainly an innovative company. And certainly the poor performance of Cathie Wood shouldn’t deter investors from investing in innovation. Yet, Google is really a simple company at its core and not the most innovative firm overall. That makes it a good choice in relation to this discussion. 

Google is essentially an advertising company. Most of the innovation associated with Google is going on through the ‘other bets’ segment of the firm. It’s a minor contribution to the success of the company. Google, essentially a search platform, lives and dies by advertising revenues.

Those ad revenues are primarily driven through the search bar and to a lesser degree through YouTube and the Google Network. Yes, Google does continue to grow its Cloud offering which falls under the umbrella of innovation but it’s simple ad revenue that drives results. 

And that’s fine. It’s what makes Google so strong when macroeconomic trends become favorable. With rate cuts expected late this year there’s a reason to believe Google’s ad revenues will continue to strengthen, likely rapidly at the end of the year.

Exxon Mobil (XOM)

Exxon Mobil (NYSE:XOM) stock is heavily influenced by the price of oil. If oil prices rise, Exxon Mobil could see increased profitability and potentially a higher stock price. Investors who believe oil prices will rebound could benefit from this.

While that’s an obvious statement there is a general sense that peak oil consumption has already occurred and prices will fall. Many bears continue to believe that yet ING sees prices continuing upward through the third quarter. 

It’s logical to assume that Exxon Mobil’s share price will rise as a consequence although the correlation is not so simple. 

Overall it suggests that ExxonMobil will perform well in the second half of 2024. Investors should also consider that ExxonMobil will continue to perform well as it invests in the new future of energy. The company has a history of stronginvestment performance and tends to create value from invested capital. 

I hope that means the company can successfully navigate the clean energy transition and produce shareholder returns in the process.

On the date of publication, Alex Sirois did not have (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.

On the date of publication, the responsible editor held a long position in GOOG.