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Ark creates ETFs that focus entirely on publicly-traded future tech companies. They operate in four segments: Genomics, Robotics, Internet, and FinTech. You wi
by isthispermanent 6y ago
Ark creates ETFs that focus entirely on publicly-traded future tech companies. They operate in four segments: Genomics, Robotics, Internet, and FinTech.
You will find very few, if any, companies in the Ark ETFs that would be considered "safe" picks for most investors. This is a testament to the nature of choosing companies working on the forefront of technological breakthroughs.
My summary spin on what they're doing is picking companies working on "what will be" as opposed to "what is".
Wright's Law is their guiding light. Worth a Wikipedia browse.
- mhuffman 6y ago> You will find very few, if any, companies in the Ark ETFs that would be considered "safe" picks for most investors. That is an understatement! This table looks like a wallstreetbets word cloud!
- xwdv 6y agoSeriously? People aren’t investing in companies like Tesla, Square, Twilio, Paypal? That’s being unreasonably conservative.
- elliekelly 6y agoTesla at nearly 10% is unreasonable for an ETF. I hope it’s so overweight because of appreciation rather than active buying.
- Centigonal 6y agoARKK (and maybe their other ETFs) are capped at 10% per individual holding. They take profits when the holding becomes overweight. Cathie Wood has said she would hold more TSLA if she could. I don't know when or how they plan to exit if things start to go sideways.
- fma 6y agoHold more if she could? Not according to this interview. If we had not taken profits in its ride up from [$]178 to 900 or nearly 1,000, it would’ve been ... maybe over 20% of the fund,” she said. “That would not be wise portfolio management. We like to control our position sizes.” https://www.cnbc.com/2020/05/22/ark-invest-ceo-why-weve-sold-tesla-despite-our-long-term-bull-case.html https://www.cnbc.com/2020/05/22/ark-invest-ceo-why-weve-sold...
- Centigonal 6y agoYou know, I thought I heard her say that in an interview, but I can't seem to find it. I might be wrong on this one.