Cathie Wood Profits From End Of Trump And Musk Bromance

You've got to hand it to Cathie Wood. When there's money to be made in the S&P 500 or out, she has an ETF ready to cash in.

Shares of Wood's ARK Space Exploration & Innovation ETF (ARKX) are up 11.4% this year, says Morningstar Direct. That makes it the fourth-best actively traded U.S. diversified ETF this year. It's topping the 2.6% return of the S&P 500 and 7.8% return of ARK's flagship ARK Innovation ETF (ARKK).

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Many of the more than 30 holdings in the fund are getting an indirect lift from the ongoing spat between President Donald Trump and SpaceX Founder Elon Musk. Now many of SpaceX's rivals may not have to compete at such a disadvantage with Trump's former right-hand man's firm.

"The Trump/Musk soap opera appears to be cooling down (for now) as both sides are slowly moving on from a wild back and forth battle of words last week," said Dan Ives of Wedbush.

Space Rally Lifts Off

Shares of ARK Space Exploration & Innovation are up more than 7% since the Musk and Trump war of words started. The S&P 500 is only up 1.2% in that time.

Additionally, nearly all of the roughly 30 U.S.-listed stocks in the ETF are up since then. And they've gained an average of more than 6%.

Take Joby Aviation (JOBY) as an example. Shares of the flying taxi maker are up 23% since last week. It's a roughly 3% position in the ARK space fund. The stock now has an RS Rating of 92. Analysts, though, are still waiting for a profit to appear. The EPS Rating is just 15.

Rocket Lab (RKLB), though, is a more obvious winner from the Trump-Musk battle. Shares of the rocket firm, which competes with SpaceX, are up 11.4% since last week. The RS Rating is now a perfect 99. Earnings are still elusive, with an EPS Rating of just 15.

But for investors in the ARK Space ETF, the gains are here now.

Biggest Gainers In ARK Space ETF

Since Musk-Trump falling out

Sources: S&P Global Market Intelligence, IBD, *-removed