Cathie Wood's Ark Invest just had the kind of year that makes fund managers smile. After a few rough years of underperformance, all six of the firm's major ETFs beat the SPDR S&P 500 ETF Trust (SPY) in 2025. And it wasn't close for a couple of them.

The Scoreboard

Let's start with the numbers. The S&P 500, as tracked by SPY, gained 16.6% in 2025. That's a solid year by any measure, and it was good enough to outperform Warren Buffett's Berkshire Hathaway. But Ark Invest's ETFs left the index in the dust.

Here's how Cathie Wood's funds stacked up for 2025:

• SPY: +16.6%
• Ark Innovation ETF (ARKK): +35.2%
• Ark Next Generation Internet ETF (ARKW): +35.4%
• Ark Blockchain & Fintech Innovation ETF (ARKF): +27.2%
• Ark Genomic Revolution ETF (ARKG): +18.4%
• Ark Autonomous Technology & Robotics ETF (ARKQ): +49.8%
• Ark Space & Defense Innovation ETF (ARKX): +49.2%

Even the weakest performer, ARKG, managed to edge out the S&P 500. But the real story is at the top of that list. ARKQ and ARKX nearly tripled the market's return, with ARKQ claiming the crown by just six-tenths of a percentage point.

What's Driving These Gains?

The success of ARKQ and ARKX isn't exactly mysterious. Both funds are heavily concentrated in the hottest sectors of 2025: artificial intelligence, robotics, autonomous technology, space, and defense. These were the areas where investors piled in as AI hype reached new heights and geopolitical tensions kept defense stocks in favor.

Looking ahead, there's buzz about a potential SpaceX IPO in 2026. If that happens, it could put ARKX and other space-focused funds like the Procure Space ETF (UFO) in the spotlight. Investors who want exposure to SpaceX's valuation without buying pre-IPO shares might turn to these ETFs as a proxy play.

Inside the Top Performers

What's particularly interesting about ARKQ and ARKX is just how similar they are under the hood. Despite less than one percentage point separating their 2025 returns, the two funds share nine of their top ten holdings. The overlap explains why they performed so similarly.

Here are ARKQ's current top ten holdings and their portfolio weights:

1. Tesla Inc (TSLA): 11.3%
2. Teradyne Inc (TER): 9.7%
3. Kratos Defense & Security Solutions (KTOS): 7.4%
4. Rocket Lab Corp (RKLB): 5.8%
5. Palantir Technologies (PLTR): 4.9%
6. Advanced Micro Devices (AMD): 4.3%
7. Archer Aviation (ACHR): 4.0%
8. AeroVironment Inc (AVAV): 3.7%
9. Deere & Co (DE): 3.5%
10. Trimble Inc (TRMB): 3.0%

And here are ARKX's top ten holdings:

1. Rocket Lab (RKLB): 9.4%
2. L3Harris Technologies (LHX): 8.4%
3. Kratos Defense & Security Solutions (KTOS): 7.8%
4. Teradyne Inc (TER): 7.5%
5. AeroVironment Inc (AVAV): 6.7%
6. Archer Aviation (ACHR): 5.3%
7. Deere & Co (DE): 5.1%
8. Advanced Micro Devices (AMD): 4.2%
9. Trimble Inc (TRMB): 4.0%
10. Palantir Technologies (PLTR): 4.0%

The only difference in the top ten? Tesla holds the top spot in ARKQ, while L3Harris Technologies takes the second position in ARKX. Everything else is just shuffled around with different weightings.

What Made the Difference

The shared holdings performed exceptionally well in 2025, which is why both funds posted similar eye-popping returns. Names like Rocket Lab, Kratos, AeroVironment, and Palantir rode the wave of investor enthusiasm for AI, defense, and space technology. Tesla's inclusion in ARKQ probably helped that fund edge ahead, given the stock's strong performance during the year.

Looking Ahead to 2026

So what's next for Cathie Wood's winning streak? AI, autonomous technology, and robotics aren't going anywhere. These trends continue to dominate investor attention and corporate spending, which could keep ARKQ flying high in 2026.

For ARKX, the potential SpaceX IPO is the obvious catalyst to watch. If Elon Musk's rocket company goes public, it could trigger a surge of interest in space stocks and ETFs that provide exposure to the sector. Meanwhile, heightened global tensions and increased defense spending could continue boosting the defense-related holdings in the fund.

The big question is whether all six Ark Invest ETFs can beat the S&P 500 again in 2026. It's a high bar after this year's performance, but if the themes that drove 2025's gains continue, Wood's concentrated bets on disruptive technology could pay off once more. Time will tell which fund comes out on top next year and whether the Ark can outpace the market for a second consecutive year.