Cathie Wood's flagship exchange-traded fund took advantage of a massive drop in Zillow's stock to buy more of the troubled real estate company.

According to Wood's Ark Investment Management's daily trading announcement, the ARK Innovation ETF purchased 288,813 shares of the property firm on Tuesday. After shutting down its tech-powered home-flipping operation, Zillow's stock dropped more than 10% on the day.

Based on the closing price, Ark's purchases were worth roughly $25 million.

In early trade on Wednesday, Zillow was down again. As it exits the algorithm-driven sector in the next months, the Seattle-based company plans to take $569 million in writedowns and cut its personnel by 25%, according to the company.

In her high-conviction bets, Wood is recognized for buying the dip. Her firm and she usually state that they have a five-year investment horizon and that the innovative startups they pursue are typically volatile.Who is Cathie Wood? What you need to know about Ark Invest's ace stock  picker

ARKK has lost roughly 1% in 2021 after producing a 153% return last year. While its main holding Tesla. has surged, other top picks such as Zillow, Roku, and Zoom Video Communications have brought the fund down.

Read more: Tesla's 45% increase this year is overshadowed by misfired Ark wagers

According to major Newswire data, the $21.8 billion ARKK has roughly 7.1 million shares in Zillow worth moreover $600 million. Wood's firm, Zillow, is the fifth-largest shareholder, with shares in the $3.4 billion ARK Fintech Innovation ETF (ARKF) and the $5.6 billion ARK Next Generation Internet ETF (ARKW).

Ark's daily trading updates only reveal active decisions made by the management team, not creation or redemption activity triggered by investor flows. As a result, the firm's precise trading activity may fluctuate.