Cathie Wood, the CEO of Ark Invest, has announced that her flagship innovation fund has completely exited China due to the country’s economic slowdown. The Ark Innovation ETF, which manages nearly $9 billion in assets, has divested from stocks generating revenue from China. This strategic move is part of a broader consolidation of the fund’s portfolio towards high-conviction bets such as Tesla, Coinbase, Roku, and Zoom, particularly during the market downturn.

In an interview, Wood told CNBC that Ark Invest typically concentrates its strategies on its highest conviction names during bear markets. As a result, Chinese stocks were gradually removed from the portfolio. The fund no longer has any exposure to China in its flagship strategy.