Ark Invest is driving a new generation of actively managed ETFs. As opposed to the traditional passive ETF that tracks some sort of benchmark, whether it’s an index, commodity, or other financial asset, Ark’s Innovation ETF (ARKK) is focused on driving alpha (market outperformance). The ETF has been enormously successful in this endeavor, with 100% returns in 2020 thus far.
Ark’s Investment Strategy
This unique investment group, run by revolutionary investor Cathie Wood, is focused on finding the next “disruptive innovation.” The firm is looking to invest in enterprises that will change the world in the Roaring 20s.
In a Forbes interview, Wood discussed this revolutionary ETF group and its strategy, saying, “disruptive innovation is often not priced correctly by traditional investment strategies because people may not understand how big the ultimate opportunities are going to be. They aren’t sizing the opportunity, and they aren’t analyzing the disruption.”
Investors just got four new ways to buy into China’s stock market “stars.”
Four exchange-traded funds launched in China this week tracking the Shanghai stock market’s Star 50 Index, a collection of the 50 largest stocks on the tech-heavy Star Market. The Star 50 Index is up nearly 50% this year.
While U.S. investors don’t yet have access to the funds — issued by China Asset Management, Huatai-PineBridge Fund Management, ICBC Credit Suisse Asset Management and E Fund Management — there are many reasons for them to be watching this move, one top money manager told CNBC this week.
These ETFs could be some of the first to access the highly anticipated Ant Group IPO, Tim Seymour, the founder and chief investment officer of Seymour Asset Management, told CNBC’s “ETF Edge” on
The technology sector has shown strong resilience amid the coronavirus pandemic. In fact, it has driven the bull market since the March lows and has been the best-performing sector so far this year with the S&P 500 Information Technology climbing more than 26%. In comparison, the S&P 500 and Nasdaq Composite Index has gained 4.4% and 24.9%, respectively.
The gains were primarily driven by mega-cap companies, especially the FAANG stocks though these have bled lately on elevated valuation concerns. Notably, after an astounding surge since the March lows, these stocks are now selling at very rich valuations. Still, they are fundamentally strong.
This is especially true as the COVID-19 pandemic has led to the global digital shift, which has accelerated e-commerce for everything ranging from remote working to entertainment and shopping. The resurgence in coronavirus cases lately and the prospect of lockdowns will continue to fuel demand for Internet (read: