Growth stocks rebounded sharply in 2023, and that was good news for star investor Cathie Wood and her Ark Investment Management family of exchange-traded funds. Wood's flagship ARK Innovation ETF (NYSEMKT: ARKK) generated strong returns, rising 67% with just a single week left in the year and recovering a significant amount of ground after big losses in 2022.

Yet ARK Innovation wasn't Wood's best performer in 2023. That honor instead goes to the ARK Next Generation Internet ETF (NYSEMKT: ARKW), which nearly doubled in value and benefited even more from favorable trends in popular areas like artificial intelligence and cryptocurrency. Here's everything you need to know about this top-performing Ark Invest ETF and why Wood is so optimistic about the exchange-traded fund's long-term prospects.

As you can see below, ARK Next Generation Internet and ARK Innovation largely made the same moves throughout the year. However, ARK Next Generation Internet had a greater concentration of top-moving stocks, helping to amplify its returns in 2023.

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Source Fool.com