ARK Funds

[GreenEggs]

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?

 

[REWahoo]

What do you guys think?

I think chasing returns is rarely a good strategy.

 

[target2019]

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...

 

[GreenEggs]

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.

 

[target2019]

There are many investments where it would be awesome to go back in time.

 

[OldShooter]

... 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/videos/identifying-superior-managers.aspx

 

[oneill225]

I have ARKK. I like it and recommend you buy on a dip. A safer way to take advantage of high tech growth stocks like Tesla, Roku, Square Inc, etc. I think it may even pay a small dividend.

 

[Montecfo]

I have ARKK. I like it and recommend you buy on a dip. A safer way to take advantage of high tech growth stocks like Tesla, Roku, Square Inc, etc. I think it may even pay a small dividend.

Agree that ARKK is interesting.

 

[Blueskies123]

I discovered ARK a few years ago when they were interviewed on Meb Faber's podcast. I liked the concept and put a few percent of my portfolio with them. I am pleased so far but who knows what will happen tomorrow. Smart people talked me into small cap value. That has not worked out well to say the least.

 

[GreenEggs]

I have ARKK. I like it and recommend you buy on a dip. A safer way to take advantage of high tech growth stocks like Tesla, Roku, Square Inc, etc. I think it may even pay a small dividend.

Wish I hadn't missed out on the big dip. But, there's a good chance we'll see another dip before too long.

 

[target2019]

This Marketwatch article mentions ARK.
https://www.marketwatch.com/story/t...r-some-surprises-2020-06-25?mod=mw_latestnews

The actual subject however is a new ETF called WFH (Work From Home) which is not related to ARK.

Direxion says the fund will focus on companies that fall into four buckets representing sub-themes: remote communications, cyber security, project and document management, and cloud technologies.

Makes me wonder if there will be a WTF investment coming along soon.

 

[GreenEggs]

It's been a while since I started this thread asking about ARK funds. I was nervous about the market at the time (5/21) but on 06/29 I finally decided to start buying some of these. I began with ARKW and as of today, it's gained 87%.

A week later I decided to buy a little more ARKW and also decided to try each of the others. They've all done quite well, between 47% to 80% since 07/06.

On 08/05 I finally began buying TAN (Invesco Solar ETF). (In hindsight I should have bought it months earlier) TAN has gained 96% since 08/05. (It's up 202% YTD)

So far ARKG and TAN have been my best choices.

I also bought a good bit of Vanguard's VGT and MGK on 07/06 for comparison, and to play it safe. VGT is up 22.4% and MGK is up 18.6% since July. Normally those would seem like decent gains, right?

I have no idea how any of these will do long term, but so far I'm really glad that I tried them. It will be interesting to see how long they can keep climbing.

 

[NYEXPAT]

Cathie and her team are great, but there are management/ownership issues that could put it at risk in the near future.

 

[Christine]

I have a little ARKF (Fintech) and ARKG (Genomics) in addition to TSLA (EVs) and Bitcoin to have my foot in trends I belive could grow into the future.

 

[Spanky]

It's been a while since I started this thread asking about ARK funds. I was nervous about the market at the time (5/21) but on 06/29 I finally decided to start buying some of these. I began with ARKW and as of today, it's gained 87%.

A week later I decided to buy a little more ARKW and also decided to try each of the others. They've all done quite well, between 47% to 80% since 07/06.

On 08/05 I finally began buying TAN (Invesco Solar ETF). (In hindsight I should have bought it months earlier) TAN has gained 96% since 08/05. (It's up 202% YTD)

So far ARKG and TAN have been my best choices.

I also bought a good bit of Vanguard's VGT and MGK on 07/06 for comparison, and to play it safe. VGT is up 22.4% and MGK is up 18.6% since July. Normally those would seem like decent gains, right?

I have no idea how any of these will do long term, but so far I'm really glad that I tried them. It will be interesting to see how long they can keep climbing.

Nice returns!

 

[Spanky]

I have a little ARKF (Fintech) and ARKG (Genomics) in addition to TSLA (EVs) and Bitcoin to have my foot in trends I belive could grow into the future.

I guess that you are really into disruptive technologies.

 

[copyright1997reloaded]

These funds remind me of the Janus Twenty fund when it was hot hot hot.

 

[Spanky]

I think chasing returns is rarely a good strategy.

Cathie Wood's recent performance has been outstanding. Here is a reading on chasing the best performing mutual funds:
https://awealthofcommonsense.com/2020/12/a-short-history-of-chasing-the-best-performing-funds/.
Could she continue to perform well? That remains to be seen. Meanwhile, investors are poring money into her funds.

If an investor believes in disruptive technology and Wood's investing philosophy, putting some money into her funds with an intent for the long haul seems fine.

 

[Christine]

I have a little ARKF (Fintech) and ARKG (Genomics) in addition to TSLA (EVs) and Bitcoin to have my foot in trends I belive could grow into the future.

I guess that you are really into disruptive technologies.

I guess I am. But while Bitcoin is purely speculative the other three are sectors I believe will grow into the future. So I don't find them to be very speculative.

 

[Blue531]

Yes, I think it's a good idea if you are interested in investing aggressively. Cathie Wood is the founder and CEO of Ark Investments. You can listen to her talk about her strategies on you tube. There was an attempted takeover but they announced yesterday they came to an agreement and she will continue to control the firm. I think they would have lost a lot of investors if she left. She prefers to invest in "disruptive innovation", new technology and the future with various funds like Arkg, Arkw, Arkq, Arkk and Arkw. Genomics, Internet technology, autonomous tech., finance, etc. She was touting Tesla some years ago before the fairly recent big rise and it is, last I checked, their biggest holding altogether.

 

[RetiredAtThirty-eight]

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?

I have ARKG that I bought in early February last year and some ARKQ from 2019. Both have been stellar performers to date.

What makes these funds so compelling is they have analysts that are focused on the underlying businesses and that are experts in their respective fields of autonomy, robotic, genomics, AI, etc. Why Wall Street has mostly MBA's when trying to analyze esoteric scientific subjects makes no sense.

A stock doesn't get in an ARK fund unless their analysis shows it's likely to perform in a superior manner over the next 5 years. The technology has to be ready for prime time.

So I think it's a great investment for anyone with at least a 5-year time horizon. I recommend not trying to second guess the market because you can end up sitting on the sidelines for years. There's really no way to predict these things with any accuracy. If you want to be extra cautious you could buy in in equal installments over a period of time but I'm a huge believer in the old Wall Street adage "Time in the market beats trying to time the market".

It's been working well for me for 30 years.

 

[CincyDave]

I bought some ARKK a little over a year ago and up about 65% so far. I like the disruptive technology idea. Fidelity also has a series of disruptive sector funds, including one which is a combination of the 5 individual sector funds FGDFX. Got a little of that as well. These are a minor part of my overall portfolio.

 

[RetiredAtThirty-eight]

I bought some ARKK a little over a year ago and up about 65% so far. I like the disruptive technology idea. Fidelity also has a series of disruptive sector funds, including one which is a combination of the 5 individual sector funds FGDFX. Got a little of that as well. These are a minor part of my overall portfolio.

Yes, that's a good one for sure. But don't over-look ARKG which has been handily out-performing it. Genomics is a huge field because it can improve so many people's lives in such a dramatic fashion.

Cathie Wood is the fund manager of all the ARK funds and is the same person who called this amazing Tesla run well before it even started! They base all their portfolio weightings/inclusions on facts and science. They have the audacity to have analysts on staff who actually understand the technologies they are investing in. And that's considered audacious to Wall Street who prefers MBA's to actual expertise in the subject matter!

My ARKG has almost quadrupled since I bought it last year! My ARKK has more than doubled but I bought it in 2019.

 

[CincyDave]

Yes, that's a good one for sure. But don't over-look ARKG which has been handily out-performing it. Genomics is a huge field because it can improve so many people's lives in such a dramatic fashion.

Cathie Wood is the fund manager of all the ARK funds and is the same person who called this amazing Tesla run well before it even started! They base all their portfolio weightings/inclusions on facts and science. They have the audacity to have analysts on staff who actually understand the technologies they are investing in. And that's considered audacious to Wall Street who prefers MBA's to actual expertise in the subject matter!

My ARKG has almost quadrupled since I bought it last year! My ARKK has more than doubled but I bought it in 2019.

RetiredAtThirty-eight I went with the more diversified one. Have a decent chunk in Fidelity Select Biotech which I've had for many years. I will definitely check out ARKG though. Thanks!

 

[RetiredAtThirty-eight]

RetiredAtThirty-eight I went with the more diversified one. Have a decent chunk in Fidelity Select Biotech which I've had for many years. I will definitely check out ARKG though. Thanks!

You bet! One other thing, I think most individual investors are not weighted heavily enough towards growth. Yes, a portfolio weighted towards growth will naturally fluctuate up/down a bit more than a more cautious portfolio but we are interested in the value of the investments when we are spending them down, not the volatility on the way the there.

I think the commonly accepted rules of thumb have not kept up with the reality in the market. Namely, the markets are more responsive than ever. This is directly attributable to the speed at which information flows, especially in the financial world. The net effect of this is that recessions and depressions happen more quickly and asset prices bounce back more quickly. We saw that illustrated in vivid technicolor last year as the COVID induced correction in the markets was over before most individual investors knew what had hit them.

This means there is less reason to over-diversify in slow growth because recessions work their way through the system with unprecedented speed. A portfolio of growth stocks can regain their value before you need to withdraw the money as long as you have a cash buffer sufficient to live on for a year or two (in the worst case).

Good luck!