Cathy Wood says she still expects to see “amazing returns” over the next five years

Kathy Wood defended the company’s innovation-focused portfolio, saying she sees “amazing returns” for Ark Invest over the next five years.

“Given our expectations for growth in these new technologies, I think we’re going to see some amazing returns,” Ark Invest CEO told CNBC’s “Capital Connection.”

She said the company had seen “significant inflows” since Jan. 17.

“I think our average investor base is going down,” she said. Average Down refers to the investment strategy to buy more units of an asset when its price falls.

“You would be surprised if the rate goes down over time, and how quickly the strategy can get back above that average. And if we’re right, it will be much higher than that average over the next five years,” Wood said.

Her comments come after her company’s flagship fund signed off on the recent technology-led sale. The Ark innovation The ETF has almost halved in the past 12 months.

“We’ve been in a bad bear market for innovation,” she admitted. “However, if you look from the bottom of the coronavirus to that peak [of the Ark Innovation ETF] On February 21, we were up 358%.”

Wood said the world currently faces “all kinds of problems” and that innovation is the answer.

She referred to the ongoing war in Ukraine, which led to an increase in the prices of some commodities such as oil. Wood said the conflict is set to lead to “a lot of demand destruction and substitution in innovation” such as a shift toward electric vehicles away from gas-powered ones.

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