We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the ARK Innovation ETF (ARKK)?
Read MoreHide Full Article
If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the ARK Innovation ETF (ARKK - Free Report) , a passively managed exchange traded fund launched on 10/31/2014.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Ark Investment Management. It has amassed assets over $1.25 B, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
This ETF is active and does not track a benchmark.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.75%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 0.20%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Tesla Inc (TSLA - Free Report) accounts for about 8.41% of total assets, followed by Stratasys Ltd (SSYS - Free Report) and Intellia Therapeutics Inc (NTLA - Free Report) .
The top 10 holdings account for about 47.88% of total assets under management.
Performance and Risk
Year-to-date, the ARK Innovation ETF has added about 23.84% so far, and it's up approximately 47.09% over the last 12 months (as of 08/16/2018). ARKK has traded between $30.75 and $48.37 in this past 52-week period.
The ETF has a beta of 1.43 and standard deviation of 22.55% for the trailing three-year period, making it a medium risk choice in the space. With about 45 holdings, it has more concentrated exposure than peers.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Invest in the ARK Innovation ETF (ARKK)?
If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the ARK Innovation ETF (ARKK - Free Report) , a passively managed exchange traded fund launched on 10/31/2014.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Ark Investment Management. It has amassed assets over $1.25 B, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
This ETF is active and does not track a benchmark.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.75%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 0.20%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Tesla Inc (TSLA - Free Report) accounts for about 8.41% of total assets, followed by Stratasys Ltd (SSYS - Free Report) and Intellia Therapeutics Inc (NTLA - Free Report) .
The top 10 holdings account for about 47.88% of total assets under management.
Performance and Risk
Year-to-date, the ARK Innovation ETF has added about 23.84% so far, and it's up approximately 47.09% over the last 12 months (as of 08/16/2018). ARKK has traded between $30.75 and $48.37 in this past 52-week period.
The ETF has a beta of 1.43 and standard deviation of 22.55% for the trailing three-year period, making it a medium risk choice in the space. With about 45 holdings, it has more concentrated exposure than peers.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.