7 ms·
many of their holdings are small and don't have a lot of trading volume, ARK owns a big share of many of these firms. For an ETF (forced selling and buying base
by mxschumacher 6y ago
many of their holdings are small and don't have a lot of trading volume, ARK owns a big share of many of these firms. For an ETF (forced selling and buying based on fund flows) the combination of extremely high valuations and low liquidity can become very, very painful.
- Black101 6y agoyeah, they won't be able to sell when they need to... they act like a small-time investor.
- riffraff 6y agonah, they act like many active managers: things seem great as long as things go up and people keep entering the theatre, and then suddenly there's a downturn and there's a tiny door to get out, and the fund is screwed. See for example Neil Woodford[0] [0] https://en.wikipedia.org/wiki/Neil_Woodford https://en.wikipedia.org/wiki/Neil_Woodford
- Black101 6y agothey say that they have 40 years of experience... surely they should have went through at least 1 major crash... unless they add up the all the 1-year intern years. I wasn't investing in stocks but I'm 40 years old and I remember 2008. The house I bought back then tripled in value when I sold it.