ARK Invest, led by Cathie Wood, is preparing for a fresh start. Following a series of significant losses and multi-billion-dollar outflows from its flagship funds, the firm is launching a new line of defensive products – so-called buffer ETFs – aimed at offering investors “limited risks, limited gains.”
🔹 Four new ETFs – named Q1 to Q4 Defined Innovation ETF – will roll out quarterly and are designed to protect investors from large downturns while providing modest upside exposure.
🔹 The goal is to protect against losses of up to 50%, while retaining full exposure to gains above 5%.
With this move, ARK Invest enters the rapidly growing buffer ETF segment, which reached $69 billion in 2025 and is expected to grow to $650 billion by 2030. Industry giants like BlackRock, Allianz, and Innovator currently lead this market – and Wood is now aiming to stake her claim.
Volatile Markets and Trump’s Tariffs Boost Demand for Protection
This move comes at a time of growing uncertainty in global markets. President Donald Trump has introduced new tariffs of up to 40% on imports from 14 countries, including key U.S. allies like Japan and South Korea, adding tension to international trade. These developments are pushing investors toward defensive tools that offer protection against sharp swings.
While Bitcoin remains above $108,000, ARK’s stock performance has been mixed. ARKK, Wood’s flagship innovation fund, is now facing its 19th consecutive month of capital outflows, with over $2 billion lost in the past year. Despite this, ARKK has rebounded with a 50% gain over the past 12 months, and the internet-focused ARKW has surged by 80%.
Wood Rebalances Portfolio: Less Risk, More Control
In line with its new approach, ARK Invest is also rebalancing its portfolio.
🔹 As of July 7, the firm acquired over 659,000 shares of Beam Therapeutics, while trimming its positions in Ionis Pharmaceuticals, 908 Devices, and Roblox.
🔹 In health- and genomics-focused funds like ARKG, holdings were adjusted to reduce exposure to higher-risk stocks.
On the crypto front, ARK continues to support spot ETFs, though its own Bitcoin ETF, ARKB, saw an outflow of over $10 million, even as the broader market recorded $217 million in net inflows over the past three days.
Conclusion: Rethinking the Strategy May Save ARK Invest
After years of aggressive growth, Cathie Wood seems to be rethinking her playbook. Instead of bold, risky moves, she’s opting for a defensive strategy – with ETFs designed to provide stability in turbulent times. As Wood herself suggested, this new approach may be “diet” – but it’s also calmer and potentially more sustainable in the long run.
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