Two top-performing U.S. ETFs, Innovator IBD 50 ETF (FFTY) and ARK Innovation ETF (ARKK), are leading this year with nearly identical returns of 9.34% and 9.32%, respectively. Both funds excel due to their focus on high-growth stocks with strong fundamentals.
FFTY, the top-performing actively traded ETF, hews closely behind ARKK but outperforms it slightly thanks to its portfolio of rapidly appreciating stocks like Rocket Lab USA (RKLB) and Celestica (CLS). RKLB boasts a flawless 99 RS Rating on its rocket stock, despite projected losses in 2025. CLS also secures a perfect 99 RS Rating for its high-growth electronics business.
On the other hand, ARKK’s dominance is bolstered by Tesla (TSLA), which remains its top holding but faced challenges throughout 2024 until Musk reportedly secured Trump’s endorsement in November. The fund’s overall performance is tied to Tesla’s rebound and growth momentum for 2025.
Both ETFs outperform the S&P 500, with ARKK trailing slightly due to underperformance last year but poised to reclaim its top spot this year. Investors increasingly favor high-growth stocks over traditional value picks, driving these funds’ success.
Source: https://www.investors.com/etfs-and-funds/sectors/sp500-cathie-wood-is-back-but-plays-second-fiddle-to-this-hotter-etf