Five years after the explosive rally that turned Cathie Wood‘s ARK Innovation ETF ARKK into a retail phenomenon, ARKK is once again outshining Big Tech — but the dynamics fueling this rally feel more grounded than the zero-rate, stimulus-fueled mania of 2020.
Between March 2020 and February 2021, ARKK exploded by 360%, turbocharged by ultraloose monetary policy and speculative appetite. During the same stretch, the Invesco QQQ Trust QQQ rose by 100% — a strong performance, yet a distant second to the rocket ride of ARKK.
Fast forward to summer 2025: ARKK has outperformed the Nasdaq 100 by 30% over the last five months, marking its strongest relative streak since January 2021.
But this time, it isn’t about dreams of profits five years away — it’s about technology platforms that are delivering results right now.
Why Is ARKK Rallying Again?
Unlike the previous cycle, when unprofitable companies with distant cash flows drove the narrative, the 2025 version of ARKK’s rally is more rooted in actual economic productivity.
“Many portfolios remained under-allocated to the five innovation platforms reshaping the global economy: artificial intelligence, robotics, multiomic sequencing, blockchain technology, and energy storage,” said Grant Banko, client portfolio specialist at ARKK, in a late-July report.
“The results are clear: innovation is advancing rapidly and delivering meaningful returns.”
Breakthroughs in AI automation, battery tech and gene sequencing have turned from lab concepts into real-world applications this year, driving investor enthusiasm for the kind of companies ARKK typically holds — high-conviction, early-stage innovators that are finally monetizing.
Inflows Tell The Story
Investors are responding to performance with their wallets.
After nearly 17 straight months of net outflows — with the sole exception of February 2025 — ARKK turned the tide in July by drawing in $730 million in fresh capital, its best month since March 2021.
But the real jaw-dropper came in August.
Between August 6 and August 14, ARKK saw daily inflows, culminating in a massive $2.8 billion haul on Thursday, August 14.
That marks the largest single-day inflow in the fund’s history.
What’s Different From 2020?
The shift lies in the nature of the gains. In 2020, ultra-low interest rates, government stimulus and animal spirits pushed investors into speculative corners of the tech world.
Investors piled into unprofitable tech startups with futuristic business models, even if cash flows were years away.
But the 2025 version of ARKK’s rally isn’t riding on fantasy. It’s powered by profits, productivity and platforms that are starting to reshape the global economy — especially artificial intelligence.
Unlike the high-growth but cash-burning companies that dominated ARKK’s 2020 portfolio, this year’s top holdings include businesses with actual earnings traction and strong revenue momentum.
Most importantly, they now carry Wall Street’s stamp of approval.
With the sole exception of Tesla Inc. TSLA which is down 17.6% year-to-date through Aug. 19, every other top-10 ARKK holding has delivered a positive return, and half of them have more than doubled in value.
| Company Name | YTD Return (%) | Portfolio Weight (%) |
|---|---|---|
| Tesla Inc. | -17.56 | 10.33 |
| Roku Inc. ROKU | 20.37 | 6.85 |
| Coinbase Global Inc. COIN | 24.62 | 6.24 |
| Tempus AI Inc. TEM | 124.31 | 5.66 |
| Roblox Corp. RBLX | 106.30 | 5.23 |
| Shopify Inc. SHOP | 32.32 | 4.97 |
| Palantir Technologies Inc. PLTR | 114.94 | 4.53 |
| CRISPR Therapeutics AG CRSP | 38.06 | 4.46 |
| Robinhood Markets Inc. HOOD | 197.08 | 4.28 |
| Advanced Micro Devices Inc. AMD | 39.83 | 3.77 |
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