What are your thoughts on the ARK suite of ETFs?

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Considering the the focuses are on innovation technology, would the ETFs offer a good way to have broad exposure to the space of innovative technology?

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Asked on December 14, 2020 11:27 am
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Honestly, can't argue with their returns over the last while. Take for instance ARKK. Sure, it's performance wasn't AS good prior to the COVID-19 crash, but it was still an ETF that nearly tripled it's NAV in just under 5 years.

As was stated above, they do seem to be able to identify emerging and disruptive technologies and invest in them early.

As with any product, past performance is no indication of future results. Don't expect these ETFs to put up crazy annualized returns of 30%+ like they've been doing over the last half decade. But, I could see them outperforming moving forward.

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Posted by Dan Kent
Answered on December 14, 2020 5:49 pm
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For what its worth, I own a bit of all of the ARK ETFs. They have done really well this year but clearly I don't expect that to continue forever. That said, they seem to have a very keen eye for emerging technologies, so I'm pretty comfortable holding for the long term. I have zero experience or knowledge in the genetics world, so ARKG provides nice broad exposure to that sector. Sometimes you see headlines that they are selling tesla, but that is only because they can only hold a 10% position, so as TLSA goes up, they have to trim, which is not necessarily bad as they are selling high and using that to invest in other emerging companies or those whos value has dropped recently. Make sure to look at their holdings, you'll see a good amount of overlap from one ETF to the next. Also Cathy Wood's monthly youtube video's on the market are very insightful.

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Posted by Ryan Densham
Answered on December 14, 2020 1:42 pm