ARKK Stock Recent News

This year has been a big year for active ETFs! According to Morningstar, even though actively managed ETFs still only represent 7% of ETF assets, they accounted for 25% of the flows in the first half of this year, growing to a record $889 billion from their start of the year, $714 billion.

One of the well-known benefits of investing in ETFs is diversification. However, with benchmark indexes reaching record levels of concentration, broad-based ETFs may not be as well diversified as investors expect.

Todd Sohn joins Diane King Hall to discuss the latest trends in the Thematic ETF environment. Sohn notes that too much product is chasing too few available dollars and closures outnumbered launches over the past two years.

"Disruptive technology" is on the rise lately. These technologies cover the field of Artificial Intelligence, Machine Learning, Blockchain Technology, the Internet of Things, Renewable Energy Technologies, 3D Printing, Cybersecurity, Quantum Computing, and others.

ARK Innovation ETF has a concentrated portfolio in high-potential tech companies, benefiting from U.S. economic growth. The ARKK ETF has had recent performance improvement due to strong holdings like Robinhood Markets, Inc. Fund flow is negative, but ARKK is a promising long-term investment with top tech companies in the market.

ARK Invest CEO Cathie Wood's go-for-broke approach to momentum investing is hurting the flagship fund this year. Numerous top holdings have tumbled.

ARK Israel Innovative Technology ETF seeks to track the disruptive innovation originating from Israel's tech sector. The fund has a well-diversified portfolio, with no position making up more than 2.69% of the fund. IZRL is highly concentrated in the information tech sector and offers exposure to various aspects of disruptive innovation.

ARK Innovation ETF (ARKK) which invests in themes such as fintech, automation, robotics, artificial intelligence, and genomics has fallen on hard times after a few stellar years. The fund's high turnover rate and questionable decision-making raise concerns about its analysis and filtering process. Investors should consider higher quality funds such as VOO and QQQ which provide less risk and better returns.

The ARK Innovation ETF is on track for another year of losses. Investments in Tesla, Roku, and Roblox are dragging down the ETF's performance.

A focus on “disruptive innovation” describes this ETF's strategy. The goal is to benefit from broad, tech-enabled secular themes.