U.S. Markets open in 8 hrs 44 mins

Ark Innovation ETF buys GM stock for the first time since May

Yahoo Finance's Alexandra Semenova discusses the latest purchases from Cathie Wood's flagship Ark Invest fund.

Video Transcript

AKIKO FUJITA: Let's move on here back into the equity space and Cathie Wood's Ark Autonomous Technology and Robotics ETF. The fund buying shares of General Motors for the first time in more than four months. Let's bring in Yahoo Finance's Alexandra Semenova. GM down today, but certainly, this is-- can we call it a pivot for Cathie Wood?

ALEXANDRA SEMENOVA: Maybe, Akiko. You know what's always interesting is that during periods of extended selling that we see, normally, institutions caution against buying up stocks, but you can always count on Cathie Wood to stay the course and to stay undeterred in her investment strategy, including yesterday, Ark bought up 120,000 shares of General Motors on behalf of its Ark Autonomous Technology and Robotics ETF. That's ticker ARKQ. And this is the first time that Ark is buying up shares since its first foray into the company in May.

And I want to emphasize again that this is really interesting because what has been a very vocal critic of legacy automakers like Ford and General Motors, even earlier this year going as far as to say that she thinks that they'll go bankrupt, but she's really changed her tune on General Motors as it pushes into the electric vehicle space. She even told Julie Hyman in an interview exclusively that she was going to make this investment a few months ago. Let's take a listen to that video from a few months ago.

JULIE HYMAN: Does that mean you're considering investing in General Motors?

CATHIE WOOD: We have an open mind. And one thing we have to be careful not to do, we must not have a closed mind.

ALEXANDRA SEMENOVA: Yeah, so very, very interesting pivot there, as you said, Akiko. She said that she met with Mary Barra and her team and is discussing those efforts. So interesting to see her up her position.

AKIKO FUJITA: Yeah, even more interesting when you consider they've been so heavily weighted on Tesla, right? I mean, they've kind of been a big bull on that. Tech stocks have been selling off again ahead of more rate hikes expected from the Fed. What's this meant for her flagship fund?


AKIKO FUJITA: We're talking about growth stocks really getting hit.

ALEXANDRA SEMENOVA: Yeah, as usual, ARK Innovation is feeling the brunt of the selloff in technology as investors prepare for more rate hikes from the Federal Reserve. But as I said, this isn't stopping her from staying the course. Ark is buying the dip very much so.

Last week's route saw Ark buy up 27 different companies, including badly beaten names like Zoom, Roku, as they see tremendous losses for the year. So this might be consistent with her five-year, her 10-year plan. But for investors, it's really time to buckle up as we possibly see more pain ahead in technology stocks and see some of those names fall lower.

AKIKO FUJITA: You can always rely on Cathie Wood to buy the dip, right? Alexandra Semenova, thanks so much for that.