By Noel Randewich

(Reuters) – Star stock picker Cathie Wood, head of ARK Invest, on Wednesday said she believed the U.S. stock market is not overvalued, and she talked up Tesla (NASDAQ:), her largest holding.

“We are not in a bubble, that I know,” Wood said, speaking virtually at a Morningstar investment conference.

Wood spoke of the platform opportunities that Tesla offers and how sustainable and fast the growth rates will be.

Fueled by massive fiscal and monetary stimulus, the is up almost 100% from its low in March 2020, near the start of the coronavirus pandemic. That has left the S&P 500 valued at about 21 times expected earnings, compared to an average forward PE of 16.5 over the past 10 years, according to Refinitiv data.

Graphic: S&P 500 forward P/E is far above its historical average – https://fingfx.thomsonreuters.com/gfx/mkt/znpnebjrgvl/Pasted%20image%201632344397603.png

Tesla is the largest holding in Wood’s flagship ARK Innovation ETF, which is heavy on growth stocks, also including Teladoc (NYSE:) Health Inc and Roku (NASDAQ:). The fund is down 5% so far in 2021, well behind the S&P 500’s 17% gain.

Morningstar reports that the ETF is in the bottom percentile of 598 U.S. Mid-Cap Growth Funds due to its poor performance over the past year. In 2020, the ARK Innovation ETF was a top-performing actively managed fund.

Tesla’s stock rose by 1.70% on Wednesday to $751.94, and has risen 77% in the last 12 months. ARK Invest stated in March that it expects Tesla stock to surpass the $3,000 threshold by 2025.