The largest exchange-traded fund at Cathie Wood’s ARK Invest couldn’t keep up with the broader market last year, but the growth-focused investment firm found success in its other ways as investors gravitated toward certain innovations more than others.

With Ark Invest ending 2024 on a strong note, the aggressive growth icon is hoping to build on that momentum in 2025.

Wood says these companies will transform industries, but their volatility causes significant swings in ARK funds' values. Related: Cathie Wood sells $21.5 million of soaring tech

The stock of Palantir Technologies (PLTR, Financial) fell 3% on early trading on Tuesday after Cathie Wood-Ark Invest sold $15 million worth of Palantir shares, or 196,728 shares in total, across various ETFs.

Cathie Wood’s flagship Ark Innovation ETF continues to sell Tesla shares, but the value of its stake has climbed above $1 billion.

Every great investor has a different favorite sector, but two things they have in common are excellent vision and timing. It's not that they win every time, but more often than not, their instincts are proven right in the long run.