These two Cathie Wood ETFs can give you exposure to some of the hottest tech trends. Here are the key differences. Cathie Wood's Ark Invest offers investors several exchange-traded funds (ETFs), generally focused on the latest technology trends -- artificial intelligence (AI), robotics, and cloud computing, among others. All are unique in the sense that they are not index funds. Unlike most ETFs, these are actively managed funds with a common goal of beating a benchmark index over time. Two of the most popu ...

Core Viewpoint - The article discusses two growth-focused ETFs, highlighting the Vanguard Growth ETF as a strong investment option while advising against the ARK Innovation ETF due to its high volatility and underperformance. Group 1: Vanguard Growth ETF (VUG) - The Vanguard Growth ETF focuses on large-cap growth stocks, particularly in the tech sector, which has shown strong growth with less risk compared to smaller companies [4][5] - The ETF has achieved a 250% return over the past decade, outperforming the S&P 500's 170% return [5] - The ETF is heavily concentrated, with Apple, Microsoft, and Nvidia making up over 35% of its holdings, but it includes reliable companies across various sectors [6][7] Group 2: ARK Innovation ETF (ARKK) - The ARK Innovation ETF has lost nearly 75% of its value since its peak in February 2021, despite its focus on disruptive innovation in sectors like electric vehicles and biotechnology [9][10] - The ETF has a high expense ratio of 0.75%, significantly higher than the Vanguard Growth ETF's 0.04%, which impacts long-term investment returns [12] - The ARK Innovation ETF has underperformed the market over the past decade, making it a less favorable option for growth investors [12]

ingland | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | MIN | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | MI | 4X | | | | | | olm26250 The vast majority of the time, investors need to choose between either investing in high-growth stocks or high-yield stocks. High-growth stocks can often be found in funds like ARK Innovation ETF ...

Core Viewpoint - ARK Innovation ETF (ARKK) has underperformed compared to Invesco QQQ Trust (QQQ) over the past five years, primarily due to its focus on volatile, disruptive technologies versus QQQ's investment in established tech giants [1][4]. Group 1: Performance Comparison - Over the past year, ARKK has achieved a return of only 10%, while QQQ has posted a return of 32.2% [4]. - Year-to-date, ARKK is down 10.2%, contrasting with QQQ's increase of 19.5% [4]. - In the last five years, ARKK has managed a mere 3.9% return, whereas QQQ has surged by 164% [4]. Group 2: Investment Strategy - ARKK's strategy focuses on "disruptive innovation," investing in companies like Tesla, Roku, and Coinbase, which promise to revolutionize their industries [2][3]. - In contrast, QQQ invests in established companies such as Apple, Microsoft, and Nvidia, which have shown resilience and consistent cash generation [3][4]. Group 3: Risk and Volatility - ARKK has a five-year beta of 1.84, indicating higher risk and volatility compared to QQQ's beta of 1.19 [5]. - The expense ratio for ARKK is 0.75%, significantly higher than QQQ's 0.20%, leading to higher costs for underperforming investments [5]. Group 4: Missed Predictions - ARKK's ambitious price predictions for stocks like Roku and Zoom have not materialized, with current prices significantly lower than projected [6]. - The fund's high-risk, high-reward strategy has led to significant challenges, raising doubts about achieving its predicted returns in the near future [7].

iantfoto Few assets were spared from the market crash that lasted from Sunday night to Monday morning. Everything from technology growth stocks to Asian equities and even precious metals lost value. Those who've tracked my recent articles likely know that I've been explicitly expecting a rise in market volatility. Further, I've explained that even potential hedges like silver are unlikely to offer protection in a volatile event, with government bonds likely being the only area of potential reprieve. As anti ...

My Rating History Particularly, the ETF's investment in Coinbase Global Inc. (COIN) provided thesis support, primarily because the cryptocurrency market was on a tear, led by a recovery of the world's largest cryptocurrency Bitcoin. The ETF suffered mightily from the compression of valuation multiples, particularly in the tech sector, but the ETF has rebalanced its portfolio and focuses on a few high-potential investments. | --- | --- | --- | --- | --- | --- | --- | |-------|------------------------|------- ...

Group 1 - The Ark Innovation ETF (ARKK) is a flagship product of Ark Invest, focusing on disruptive innovation with $7.8 billion in assets under management [3][4] - The ETF primarily invests in technology and internet-related stocks, aiming for significant growth potential through companies like Tesla, Coinbase, Roku, Block, and UiPath [5][4] - Over the past five years, the Ark Innovation ETF has only gained 6.3%, contrasting sharply with competitors like the Invesco QQQ Trust, which increased by 159% [6][7] Group 2 - The ETF has a relatively high expense ratio of 0.75%, which, combined with its poor performance, raises concerns about its attractiveness compared to other ETFs with lower expense ratios [6][8] - The Vanguard S&P 500 ETF, with an expense ratio of just 0.03%, has also outperformed the Ark Innovation ETF over the same period, highlighting the importance of cost relative to returns [8] - The future performance of the Ark Innovation ETF remains uncertain, and potential investors should be aware of its strategy and historical performance before making investment decisions [9]

Group 1 - Cathie Wood's ARK Innovation ETF (ARKK) is down 16.73% this year, making it the second-worst actively traded U.S. diversified stock fund [1] - The ARK Innovation portfolio is underperforming significantly compared to the S&P 500, which is nearing all-time highs [2][4] - Nearly 70% of the 35 stocks in the ARK Innovation portfolio are down this year, with three stocks down 60% or more [3] Group 2 - Pacific Biosciences of California (PACB) has seen its shares decline nearly 81% this year, the worst performance in the ARK Innovation portfolio [5] - Tesla (TSLA), the largest position in the ARK Innovation portfolio at over 11.4%, is down nearly 28% this year [7] - Critics argue that ARK Innovation's approach lacks adequate risk management, leading to significant pain when stocks underperform [8] Group 3 - The worst-performing stocks in the ARK Innovation portfolio include Pacific Biosciences, Verve Therapeutics (down 62.2%), Ginkgo Bioworks (down 60.2%), 10x Genomics (down 59.5%), and Unity Software (down 52.5%) [11]

Core Viewpoint - Investing in technology stocks can be complex, but technology-focused ETFs like Invesco QQQ can provide diversification and simplify investment decisions [1][2] Group 1: Invesco QQQ ETF - The Invesco QQQ ETF includes 100 of the largest companies in the Nasdaq Composite, with approximately 59% of its holdings in technology stocks [3] - The ETF has significantly outperformed the broader Nasdaq Composite over the past decade, acting as a rolling bucket of prominent companies [4] - The underlying blue-chip technology stocks are often well-established and financially robust, positioning the ETF for long-term success [5] Group 2: Ark Innovation ETF - The Ark Innovation ETF, managed by Cathie Wood, focuses on emerging industries and has a heavy concentration in technology stocks, but it targets riskier, up-and-coming businesses [7] - The ETF has been more volatile and has underperformed since interest rates rose, contrasting with its previous success in a low-interest-rate environment [8][9] - The fund's active management style introduces the risk of poor investment decisions and comes with a higher expense ratio of 0.75% compared to 0.2% for Invesco QQQ [10][11] Group 3: Comparison and Conclusion - The Invesco QQQ is passively managed and tracks an index, while the Ark Innovation ETF is actively managed, leading to different risk and return profiles [11][12] - Although the Ark Innovation ETF may offer higher upside potential, the Invesco QQQ has demonstrated sustained investment returns and is considered the better buy in the current economic climate [12][13]

Group 1 - The ARK Innovation ETF (ARKK) was launched in 2014 and gained significant popularity around 2018, driven by the belief that disruptive innovation will drive returns [1][2] - ARKK's assets under management (AUM) increased dramatically in 2020 and 2021 but fell in 2022 due to rising interest rates affecting its core holdings [2][3] - Despite criticism for underperformance, investors from the fund's inception until now have generally fared well, with the fund only underperforming the S&P since 2022 [3] Group 2 - ARKK has an expense ratio of 0.75% per annum and is listed on the NYSE Arca electronic exchange [5] - The fund's investment themes include Next-Gen Internet, Fintech Innovation, Genomic Revolution, AI and Robotics, and Space Exploration [6][15][19][22][27] - ARKK's top holdings include companies like Tesla Motors (TSLA), Coinbase Global (COIN), and Roku, Inc. (ROKU) [10][36] Group 3 - The Next-Gen Internet theme focuses on companies benefiting from cloud technology and internet-based services [7] - The Fintech Innovation theme emphasizes companies that introduce technologically enabled financial products and services [15] - The Genomic Revolution theme targets companies involved in gene editing and biotechnology [19] Group 4 - ARKK's portfolio is diversified across various themes, with a typical range of 35-55 stocks and a median market cap of $8 billion [34] - The thematic composition of ARKK's portfolio includes Intelligent Devices (17.6%), Next Gen Cloud (13.3%), and Health Care (23.8%) [38] - The fund's average P/E ratio is approximately 58, significantly higher than the S&P average, indicating a focus on high-growth companies [50][52] Group 5 - The fund's strategy resembles a venture capital model, investing in high-growth, cash-poor companies with the hope of significant returns from a few successful investments [43][44] - ARKK's inability to access private equity limits its investment opportunities compared to traditional VC firms [48][49] - The fund's valuation ratios are expected to remain high due to its focus on disruptive innovation, which may deter value investors [52]