In a promising development, Cathie Wood's exchange-traded funds (ETFs) are showing remarkable growth in 2023, with two of her funds already up 98% and 102% for the year. As the market rebounds, these ETFs could potentially surge even higher and continue their upward trajectory in 2024.

Wood, the CEO of Ark Invest, gained significant attention during the previous bull market when her ETFs experienced an unprecedented surge. However, in early 2021, many of the stocks held in these ETFs fell out of favor, impacting the performance of Ark Invest funds. Despite the challenges faced in 2022, Wood's investment philosophy, which focuses on long-term trends and technological disruptions, remains steadfast.

While heavily invested in tech stocks, Wood's ETFs prioritize a long-term outlook, embracing high-risk, high-potential investments in industries that are expected to drive global change in the coming years and decades. These forward-thinking companies often thrive in a vibrant economy but face selling pressure in challenging conditions. However, considering the economy spends more time in bull markets than in bear markets, Ark Invest's ETFs are positioned to outperform the market over extended periods.

The outstanding performance of Wood's ETFs in 2023 can be attributed to the rebound of the market, particularly in the tech sector. Two standout performers are the Ark Next Generation Internet ETF, up a staggering 102%, and the Ark Fintech Innovation ETF, up 98% this year.

The Ark Next Generation Internet fund focuses on investments in internet-based technologies, including cloud computing, the Internet of Things, and social media. Meanwhile, the Ark Fintech Innovation fund targets disruptive companies revolutionizing the financial sector. Both funds have outperformed the broader market this year, but their overall returns lag behind in the past two years.

Looking ahead to 2024, investors can expect these ETFs to benefit from long-term market trends, with the potential to outshine the competition. The philosophy of investing in high-potential stocks that have the capacity to deliver significant gains amidst bear markets continues to hold promise. One successful stock can more than compensate for several underperformers, especially in bull markets where these growth stocks tend to shine.

It is important to note that while Ark Invest's ETFs offer opportunities for growth, diversification across different asset classes is recommended. These ETFs can complement a well-rounded investment portfolio, providing a chance to capitalize on growth opportunities while mitigating overall risk.

As the market gears up for a potential bull market in 2024, Wood's ETFs are poised to benefit from the practical value their holdings offer. These ETFs have the potential to deliver substantial returns over the long run, making them an attractive option for investors seeking consistent growth.

Please note that the opinions expressed in this article may differ from The Motley Fool's Premium Investing Services. It is advised to carefully consider individual investment objectives and consult with a financial advisor before making any investment decisions.

Disclosure: The Motley Fool has positions in and recommends several entities mentioned in this article, including Amazon, Apple, Block, Coinbase Global, Roku, Shopify, Tesla, and UiPath.