Crash Course on ETF?
An ETF is a basket of securities, shares of which are sold on an exchange. They combine features and potential benefits of stocks, mutual funds, or bonds. Like individual stocks, ETF shares are traded throughout the day at prices that change based on supply and demand.
Ark Innovation - ARKK
ARK defines ‘‘disruptive innovation’’ as the introduction of a technologically enabled new product or service that potentially changes the way the world works.
Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies (‘‘Genomic Revolution”), industrial innovation in energy, automation, and manufacturing (‘‘Industrial Innovation’’), the increased use of shared technology, infrastructure and services (‘‘Next Generation Internet’), and technologies that make financial services more efficient (‘‘Fintech Innovation’’).
ARKK is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation.
Net Assets - $22.28 Billion | Expense Ratio - 0.75%
At the time of writing- Arkk ETF is down 22% (As compared to 19 Feb 2021). This happened due to the downfall of several stocks mentioned below- particularly Unity Software which has fallen down 33.2% this year.
Should you Invest?
Here's my issue with it given how far up it has been given the hurdles that the ETF will it is very unlikely that they repeat the performance from last year for any extended period of time but I do think it makes sense I think it offers solid exposure to this type these types of companies I think having an etf like this as a piece of our portfolio to complement to give us access to some growth stocks can be tricky to pick out so if we didn't want to pick out individual growth stocks we wanted this portfolio to represent the growth component of our portfolio, I think that makes tons of sense I think that it could be a smart move but I think it really makes more sense if that is a very long-term holding and we can deal with the inevitable inevitable volatility that this portfolio will bring now for me on a personal basis well I prefer picking more value stocks than growth stocks if I was looking again for the access to these types of companies this might be a good way of doing it but because I prefer picking individual companies...
Should you Invest?
Here's my issue with it given how far up it has been given the hurdles that the ETF will it is very unlikely that they repeat the performance from last year for any extended period of time but I do think it makes sense I think it offers solid exposure to this type these types of companies I think having an etf like this as a piece of our portfolio to complement to give us access to some growth stocks can be tricky to pick out so if we didn't want to pick out individual growth stocks we wanted this portfolio to represent the growth component of our portfolio, I think that makes tons of sense I think that it could be a smart move but I think it really makes more sense if that is a very long-term holding and we can deal with the inevitable inevitable volatility that this portfolio will bring now for me on a personal basis well I prefer picking more value stocks than growth stocks if I was looking again for the access to these types of companies this might be a good way of doing it but because I prefer picking individual companies...
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