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Old 05-21-2020, 11:25 AM   #1
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ARK Funds

I recently discovered ARK funds (but have not purchased any yet). They have about 5 or 6 ETFs that have performed quite well. ARKG is up over 40% YTD and its largest fund, ARKW gained 87% in 2017. SPY is down 7% YTD

I realize that they are managed sector funds, so they are less diversified & have higher expense ratios. But I'm thinking a well-managed sector fund might be a wiser choice than a broad-based index fund during a major downturn.

What do you guys think?
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Old 05-21-2020, 11:27 AM   #2
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What do you guys think?
I think chasing returns is rarely a good strategy.
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Old 05-21-2020, 11:50 AM   #3
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I heard their ETFs are focused on disruptive innovation...

But seriously, what could go wrong? One tends to overlook the downside and focus on recent gain. ARKG is not as spectacular when you compare 5 years.

Maybe try a backtest at https://www.portfoliovisualizer.com. You'd be buying ARKG at 5-year high. It might do down...
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Old 05-21-2020, 12:41 PM   #4
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I heard their ETFs are focused on disruptive innovation...

But seriously, what could go wrong? One tends to overlook the downside and focus on recent gain. ARKG is not as spectacular when you compare 5 years.

Maybe try a backtest at https://www.portfoliovisualizer.com. You'd be buying ARKG at 5-year high. It might do down...


Since inception (2015) $1,000,000 invested in SPY = $1,570,000 today
ARKG= $2,042,00 today
ARKW= $3,778,000 today

You're right about them being priced at their peaks. It would probably be a better idea to wait until after the next correction to get into ARKs, or anything else.
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Old 05-21-2020, 01:34 PM   #5
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There are many investments where it would be awesome to go back in time.
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Old 05-21-2020, 01:53 PM   #6
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... I'm thinking a well-managed sector fund might be a wiser choice than a broad-based index fund during a major downturn. What do you guys think?
I think that is a really good strategy if you can reliably predict the future.

It has been demonstrated time and time again that past performance is not predictive. Selling the myth that past performance is important is one of the major successes of the investment industry. Here's one of the genuine experts talking about the subject: https://famafrench.dimensional.com/v...-managers.aspx
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