ARKK ETF Review - is the ARKK ETF a Good Buy Today | Summary and Q&A

TL;DR

The ARK Innovation ETF aims to invest in disruptive innovation companies, has shown impressive return and is actively managed by Cathie Wood and her team.

Key Insights

• 🧬 The ARK Innovation ETF invests in disruptive innovation companies, focusing on areas like robotics, AI, and DNA sequencing.
• 😤 Cathie Wood and her team actively manage the ETF, selecting companies and determining portfolio weight.
• 🛀 The ETF has shown impressive performance, with a return of around 160% in the past year.
• 🥹 Individual holdings in the ETF can have a significant impact on its performance, both positive and negative.
• 💐 The top five stocks in the ETF have contributed to nearly two-thirds of its total return.
• 🥳 The ETF has an expense ratio of 75 basis points, which is on the higher side but may be justified for a specialized fund like this.
• 🌥️ The ETF has a large amount of assets under management, which could potentially impact its performance.

Transcript

hi i'm jimmy in this video we're going to look  at one of ark invest's largest etfs known as the   Ark Innovation ETF ticker symbol ARKK our goal  with this video is to get to better understand   what the ark innovation ETF does and to see if we  can identify some of the strengths and weaknesses   of this ETF okay so let's jump right in so the  ark... Read More

Questions & Answers

Q: How is the ARK Innovation ETF different from other ETFs?

Unlike most ETFs, the ARK Innovation ETF is actively managed, with Cathie Wood and her team selecting the companies for the portfolio.

They also determine the portfolio weight of each company based on their importance to the fund.

Q: What impact do individual holdings have on the performance of the ETF?

Each holding in the ETF contributes to the overall performance. For example, if a stock like Zoom performs well, it can significantly increase the ETF's total return. However, if a stock underperforms, it can drag down the performance.

Q: What are the top-performing stocks in the ARK Innovation ETF?

The top five stocks in terms of contribution to the total return of the ETF are responsible for nearly two-thirds of its performance. These stocks have added about 96% to the total return of the fund in the past year.

Q: Does it make sense to invest in the ARK Innovation ETF?

It depends on the individual's investment goals and risk tolerance. The ETF offers exposure to growth stocks and can be a good option for those who want a diversified portfolio of innovative companies. However, it's important to be aware of the potential volatility and the fact that past performance may not be indicative of future results.

Summary & Key Takeaways

• The ARK Innovation ETF focuses on investing in disruptive innovation companies, such as robotics, AI, and DNA sequencing.

• It is actively managed by Cathie Wood and her team, who select the companies and determine their portfolio weight.

• The ETF has shown strong performance, with a return of around 160% in the past year, outperforming the S&P 500.