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2 Things You Need to Know If You Buy This Disruptive ETF Today
ARK InvestmentARK Investment(US:ARKK) fool.comยท2024-05-29 14:00

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]