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]

Ark Invest has made some bold calls that have proved correct, but they have not made up for its misses.Ark Invest and its leading exchange-traded fund, the Ark Innovation ETF (ARKK 2.00%), have gained significant attention in recent years. The investment management firm led by Cathy Wood and its various industry-specific funds likely influenced investors to more closely examine companies that are focused on innovation.However, for all the publicity Wood has attracted, the Ark Innovation ETF has typically un ...

Does Cathie Wood and Ark Funds Really Own 5 Mega Cap Blue Chip Dividend Stocks? zimmytws / Shutterstock.com Much has been written and discussed about the incredible success and then failure of Cathie Woods’s phenomenal ARK Innovation fund (NYSE: ARKK), which exploded in 2020 only to implode in the fall of 2021 and trade sideways most of 2022. The huge parabolic move in 2020 and 2021 saw the ARK Innovation exchange-traded fund rise a stunning 313% between March 15 of 2020 and February 7 of 2021. Investors ...

blackdovfx The technology sector has had a great twelve months, rising by ~40%, outperforming the S&P 500 by over 15%. For the most part, technology stocks have found reprieve as the inflation outlook has cooled, causing many to adjust valuations for tech stocks in hopes that interest rates will decline. Further, I argue that the sector has benefited from a resurgence in speculative buying activity stemming from a decline in individual investor cash allocations. The rally was driven by investor exuberan ...

Cathie Wood thinks "now is not the time to run for the hills" with Tesla. A prominent member of Congress disagrees.Nikola Tesla was born during a lightning storm. He later earned the nickname "the wizard of lightning" because of his electrical inventions. It probably shouldn't be surprising that the company named after him, Tesla (TSLA -2.71%), is the investing equivalent of a lightning rod, attracting diehard supporters and adamant opponents. Tesla's fans and foes span a wide spectrum. Ark Invest founder C ...