ARKK (and maybe their other ETFs) are capped at 10% per individual holding. They take profits when the holding becomes overweight. Cathie Wood has said she would hold more TSLA if she could. I don't know when or how they plan to exit if things start to go sideways.
Hold more if she could? Not according to this interview.
If we had not taken profits in its ride up from [$]178 to 900 or nearly 1,000, it would’ve been ... maybe over 20% of the fund,” she said. “That would not be wise portfolio management. We like to control our position sizes.”
