Cathie Wood became one of the most popular institutional investors in 2020 because of her aggressive style of investing. Over the course of the year, it seemed like she could do no wrong, as all her portfolios crushed the market. Unfortunately for Canadians, most of her positions are comprised of American-listed companies. However, there are three stocks she likes a lot that TSX investors will be able to buy as well.
This seems to be her favourite Canadian company
Shopify (TSX:SHOP)(NYSE:SHOP) is her largest Canadian holding. As of Ark Invest’s latest filing, Shopify was the seventh-largest position held by the firm, a position worth US$1.2 billion. What’s even more impressive is that Cathie Wood decided to double her overall position in the previous quarter. Since the start of the year, Ark Invest bought nearly 600,000 more shares of Shopify stock. Why does she like this company so much?
Shopify has proven time and time again that it is a winner. Since its IPO, Shopify stock has gained more than 3,500%! While investors may think this growth could indicate that Shopify’s best days are behind it, I would strongly disagree. In Q1 2021, Shopify reported a 110% year-over-year growth in its quarterly revenue. This shows that the company has managed to continue growing even after the COVID-19 pandemic. Cathie Wood loves this stock and it may be time for you to consider adding it to your portfolio as well.
This was a new position in 2020
Like many Canadian investors, Cathie Wood took note of the incredible run that Lightspeed (TSX:LSPD)(NYSE:LSPD) went on last year. During the back half of the stock’s 650% gain after the 2020 market crash, Cathie Wood decided to add the company into Ark Invest’s portfolio. This made Lightspeed only the second Canadian stock to feature in Ark Invests prolific portfolio.
Like Shopify, this company was a beneficiary of the COVID-19 pandemic. While many investors thought Lightspeed would suffer as a result of the lockdowns (hence its 70% drop last March), CEO Dax Dasilva was quick to act. At the start of the pandemic, Dasilva pulled out all the stops to ensure its merchants would be able to survive the pandemic. Lightspeed offered free services such as Lightspeed Delivery, Lightspeed eCommerce, and Lightspeed Loyalty. As a result, the company saw its value go through the roof, making shareholders very happy.
Are you interested in buying Amazon stock for $10?
The final position that Canadians can emulate isn’t a stock per se, but it’s an ETF. Cathie Wood holds all of the FAMANG stocks except for Google. This means that Ark Invest held positions in Facebook, Amazon, Microsoft, Apple, and Netflix as of the end of Q1 2021. Unfortunately, these stocks all trade on the American exchanges. However, Canadians can take advantage of the newly listed Evolve FANGMA Index ETF.
This ETF is the first of its kind, as no other firm offers a product that holds only the six big tech companies. When it was released earlier this month, Evolve set the price at a very affordable $10. This means that Canadians can start positions in six of the strongest market performers without breaking the bank.