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  • Fund Watch
  • disruptive innovation

Which ARK ETF should I watch?

Five out of six of these ARK ETFs have seen incredible returns over the last 12 months. ARK gives us plenty of options to choose from, so here’s each ETF broken down to make your choice that bit easier. 

This article was originally written by MyWallSt. Read more market-beating insights from the MyWallSt team here.

 

ARK Autonomous Technology & Robotics ETF (ARKQ)

Companies within ARKQ are focused on substantially benefitting from the development of new products or services, technological improvements, and advancements in scientific research related to energy, automation and manufacturing, materials, and transportation. These companies work with autonomous transportation, robotics, automation, 3D printing, space exploration, and energy storage. Top holdings include TeslaTrimbleBaiduJD.com, and Alphabet

The fund has returned an impressive 124% in the last 12 months.

 

ARK Next Generation Internet ETF (ARKW)

ARKW companies are betting on the shifting of technology infrastructure to the cloud, enabling mobile, new, and local services. This includes companies that rely on the increased use of shared technology, infrastructure and services, internet-based products, new payment methods, big data, and the internet of things. ARKW’s biggest holdings are in the cloud computing, e-commerce, Artificial Intelligence (AI), and blockchain spaces, like ShopifyRoku, Tesla, Square, and Teladoc

ARKW currently trades around $150 per share, below its $190 all-time high, and has returned 142% in the last 12 months.

 

ARK Genomic Revolution ETF (ARKG)

ARKG selects companies that are expected to substantially benefit from extending and enhancing the quality of human life via technological and scientific developments and advancements in genomics. ARKG companies operate in industries like CRISPR, targeted therapeutics, stem cells, agricultural biology, molecular diagnostics, and bioinformatics. This fund has a lower median market cap compared to other ARK ETFs, at $5 billion rather than ~$20 billion. The largest holdings include Teladoc, Exact Sciences, and Vertex Pharmaceuticals

ARKG has had an amazing 12 months, returning almost 124% year to date. 

 

ARK Fintech Innovation ETF (ARKF)

ARKF seeks long-term growth of capital by investing in companies that are engaged in financial technology innovation. ARK decides that a company is deemed to be engaged in the theme of fintech innovation if it is involved in the introduction of a technologically enabled new product or service that has the potential to change the way the financial sector works. This includes companies working in transaction innovation, blockchain technology, risk transformation, and frictionless funding platforms. ARKF’s biggest holdings include Square, PaypalSea Limited, Shopify, Pinterest, and Tencent. The median market cap of its portfolio companies is high, at $58 billion. 

ARKF investors have seen returns of 125% in the last 12 months. 

 

Space Exploration & Innovation ETF (ARKX) 

This ETF is great for investors looking for diversified exposure to space exploration and aerospace activities such as agriculture, internet access, imaging, and global positioning systems (GPS). ARKX is betting on the future of orbital and sub-orbital aerospace, with the former being companies that launch, make, or operate platforms such as satellites and launch vehicles, and the latter being companies that launch, make, or operate platforms in the suborbital space such as drones, air taxis, and electric aviation. ARKX’s top holdings include TrimbleLockheed MartinBoeing, and Kratos Defense and Security

The fund has had a disappointing performance in the last 12 months, trading at $20.24, just $0.06 lower today than this day last year. This is a risky fund that should generate very impressive returns should advanced space technology take off. 

 

ARK Innovation ETF (ARKK) 

Companies within ARKK include those that rely on the development of new products or services, and technological improvements and advancements. ARKK has a very simple investing philosophy — the fund essentially takes a handful of high-potential but not too risky investments from the funds listed above and compiles them into one, resulting in a diverse and broad ETF. This means that ARKK investors have a diverse stake in robotics, cloud infrastructure, genetics, fintech, and space technology. 

Over the last 12 months, the fund has delivered returns of almost 128%. 2020 was a crazy year for the stock market, so we likely won’t see similar yearly growth this year, but this is still a great investment. 

 

MyWallSt gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team posts daily insights, subscriber-only podcasts, and the headlines that move the market. Start your free trial now!

 

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

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