ARK Invest - ARK Innovation ETF (ARKK)

As you may know, I am closely following the developments at Tesla, but I’m too afraid to invest in a single stock, even if I really like what they are doing. While watching countless videos on Tesla, I saw many times interviews with Catherine Wood from ARK Invest. Her company is the issuer of ARK Innovation ETF (ticker ARKK).

The ETF has a TER of 0.75% and total invested assets of $5 billion. TSLA is their largest holding, but still it’s only 10%. Other companies on the list also look interesting. Like Square, a one stop shop for businesses and private persons, which implements blockchain and can be a threat to banks, because it can make you a loan offer within minutes.

So what do you think? Did any of you invest with this fund? I know it breaks the cardinal rule of sticking to the market if you don’t know what you’re doing. But I sometimes have a feeling that the market can be late to spot the next technological disruption.

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I generally prefer ARKW as a compliment to VGT (TSLA, AMZN, FB are not included in VGT), but both ARKK and ARKW are good and have a reasonable record of outperformance. At the moment, I’m not invested in either of them though.

To get best of both worlds, one could also consider combining ARKW with ARKG, there is no overlap.


I had a feeling like the ARKK combines all the other smaller ETFs? It is for sure the largest one by net assets.

Outperformance is nice, but past performance should not be an indicator for the future :slight_smile:

They all have 30-50 holdings at any given time and the consituents/weighting are not the same.

You already answered yourself - noone has a clue which will do best or if any will continue to outperform the broader market.

As for me, I’d be happy to leave the Biotech stuff (ARKG) out as I’m generally skeptical towards this sector while I’m fairly comfortable with IT and know the holdings within ARKW.

I am a bioinformatician working closely with some of the technologies that ARKG holding specialise in. The like to keep talking about CRISPR patents and so, but the technology is moving / changing / optimising fast and there is no way to know if these basic patents can be exploited to make money (or maybe I am too stupid to understand their enthusiasm)

Illumina on the other hand is a champion. And if we all get our genome sequenced in the next 5-15 years on national / global scale for population-wide health studies, then Illumina is the only name in town.

In last 5 years, I have worked with single cell data from Fluidigm and 10X Genomics and have seen 10X genomics blow away Fluidigm in terms of scale and price per cell. 10X is GREAT, and improving / adding functionalities, but again new papers are trying to accomplish (and improving though still much behind 10X) combinatorial barcoding without using 10X machines.

Or maybe I am missing forest for the trees. (Working in the field makes you see the good and bad, and investing is different from being a researcher)

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Factsheet: “ ARK believes the securities held in ARKK present the best risk-reward opportunities from ARK’s innovation-based themes.”
I did not investigate further.

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They are probably all OK, but be careful with your buying. If you see the overall market as red hot today, this stuff is in the infrared.

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I am invested in ARKK but with only a negligible part of my portfolio, because VT allows me to sleep well and a little bit of sector picking gives me the feeling i at least tried to pick the winners. I do not have the knowledge + nerves to do real stock picking.

Why buy a fund with 10% Tesla if you are mainly convinced just of Tesla alone?

Why not just use 5% of your assets for Tesla alone? What’s the worst that could happen? Reducing your return from 6% to 5.7% for example if Tesla goes to 0?

I was very close to investing in it last august when I put money into KBA. I chickened out and did not. Now I regret missing the rally. Right now I am pouring money into small cap value. Maybe next year, I’ll regret again.

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It would be interesting to know how much TSLA has contributed to the performance of the fund.

A tech fund would be better, but tech companies are already a big part of a total index fund. So back at the total market recommandation

Tesla already blew up. Yes, maybe it will go even higher, to $7000, but I feel like the biggest growth potential is already behind us, after it went from $200 to $1800. And I don’t think that Tesla is the only company under the sun that can change the World. 0.75% is a substantial price to pay, but maybe the ARK people are onto something. I don’t have the time to investigate every tech startup with potential.

Someone mentioned ARKx on this forum a few weeks ago, it’s the first time I’d heard of it. I have VGT & some Medtech & Biotech Index ETF’s, so I’m a bit wary of making it more complicated, and also having positions covered multiple times.
But I like the feel of ARKK & ARKW, if this rally hadn’t gone crazy in these weeks, I might’ve jumped on board.

If you have reach $1800 on Tesla you probably check enough often for stock picking and select what you want with you own percentage. Not really understand why people take and pay fee on ETF. You can duplicate this ETF by picking stock and let grow these stocks like ETF or even check if ETF change something in his strategy but you can remove all stock not wanted too.

The answer is minimalism and not wanting to track percentages all the time.

Btw I opened YouTube last evening and one of the suggested videos was this… like Google knows what I’m looking for…

This guys describes the top 10 companies in the ETF, tells what they do and their recent performance. He’s not too excited about them except for Tesla.

What is this Youtubers investment performance record? I know for a fact that Katie Wood does not bad at all.

Another famous female tech analyst is Beth Kindig, worth a quick google search for some actionable ideas.

I know, he’s just some youtuber, when I turned on this video I thought the same. But he gives you a quick recap of what the companies are. It’s not like they all got a Tesla-esque story behind them, at least not at first glance. By the way, I checked Square headquarters on Google Maps and there they have a 2/5 star rating and lots of angry reviews saying “they keep my $1000 and don’t answer my calls”, “there is no way to contact them” etc.

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That’s how valuation of stocks works today. Google reviews and some random Youtube videos xD

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But seriously, you hear that this company is so great, it’s a bank killer, such potential, much modern, wow. And then it’s doesn’t even get customer satisfaction right. How else are you gonna convince yourself to invest with someone? You can’t just take what they tell at face value. Maybe they’re just good at bullshitting, maybe they got one thing right and now it looks like they got it all right.

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I’m not sure why maps reviews on the HQ listing are relevant. Almost by definition they’ll only get negative reviews (it’s not a place you visit like a restaurant or a shop, so the only people who’ll bother are those not happy with the company).

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