ARKK

ARKK is an actively managed exchange-traded fund (ETF) that seeks long-term growth of capital by investing primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the fund’s investment theme of disruptive innovation.

The fund was founded by Cathie Wood in 2014 and is managed by ARK Investment Management. ARKK invests in companies that are developing or will benefit from disruptive innovations in several industries, including:

• Technology: This includes companies that are developing new technologies such as artificial intelligence, robotics, and blockchain.
• Healthcare: This includes companies that are developing new drugs, treatments, and diagnostics.
• Clean energy: This includes companies that are developing renewable energy technologies such as solar and wind power.
• Financial technology: This includes companies that are developing new financial products and services.

ARKK has been a very successful ETF, with its share price rising by over 1,700% since its inception. However, the fund has also been volatile, and its share price has declined by over 50% in the past two years.

Here are some of the pros and cons of investing in ARKK:

Pros:

• Potential for high returns: ARKK invests in companies that have the potential to disrupt entire industries, which could lead to very high returns.
• Exposure to disruptive innovation: ARKK is a unique ETF that gives investors exposure to a wide range of disruptive innovation companies.
• Managed by Cathie Wood: Cathie Wood is a well-respected and experienced investor who has a proven track record of success.

Cons:

• Very volatile: ARKK is a very volatile ETF, and its share price can fluctuate significantly in a short period of time.
• Focused on a narrow range of sectors: ARKK is heavily focused on technology, healthcare, and clean energy, which could make it more susceptible to market downturns in these sectors.
• Illiquid: ARKK is a relatively illiquid ETF, which means that it can be difficult to buy and sell shares without significantly impacting the price.