Should you invest in ARK Innovation ETF?
While some investors may jump at the opportunities that the ARK Innovation ETF provides, others might be less inclined to recognize it as their best ETF choice. In general, there are specific factors that investors should weigh to help them determine if this Cathie Wood ETF is right for them.
Certainly, the Ark Innovation ETF is a worthy choice for those enthusiastic about picking up exposure to a wide swath of growth industries. It's still the very early innings for industries such as intelligent devices, as well as others represented in the fund -- including humanoid robots, which have a 2.1% weighting. For those with multi-year investing horizons, this fund will interest those on the prowl for a long-term ETF to invest in.
The amount of risk investors are comfortable accepting is another critical consideration. Buying shares of disruptive technology companies has the potential to provide investors with outsized gains; however, it's also possible that the lofty ambitions of the related companies are never realized, and their stocks go nowhere. Nonetheless, opting for an ETF with 48 holdings helps to reduce the risk of a single disruptive technology stock failing to prosper.
The amount of risk investors are comfortable accepting is another critical consideration. Buying shares of disruptive technology companies has the potential to provide investors with outsized gains; however, it's also possible that the lofty ambitions of the related companies are never realized, and their stocks go nowhere. Nonetheless, opting for an ETF with 48 holdings helps to reduce the risk of a single disruptive technology stock failing to prosper.