Are ARK ETFs the new Leveraged ETFs? Next Tesla (per Cathie)

Are ARK ETFs the new leveraged ETFs and the ultimate tool to amplify gains? Cathie Wood led ARK Invest offers ETFs that focus on disruptive and innovative technologies and companies. I have been exploring these for some time now and trying to answer a few questions. Should ARK ETFs be in my portfolio and do they have the potential to offer explosive returns similar to leveraged ETFs but with less risk. So, in this video, I going to compare ARK Invest to leveraged ETFs from a performance perspective. I will share my thoughts on ARK Invest as a company, their investment strategy and changes I am making to my portfolio.

Reasons to Invest in ARK
#1 The investment mindset – How many portfolio managers out there focus on innovation, the future and exponential growth. Traditional investing means valuation, EPS, revenue, you get the point. It centered around value as opposed to exponential growth. ARK gives you an opportunity to invest in a different way of thinking. And if it works, could lead to major gains for your portfolio
#2 ARK Invest has now been in the business for a while, numbers speak for themselves. ARK ETFs are the best performing ETFs for few years now with 50% average annual return and some also have 5 star Morningstar rating.
#3 and it is a big one. These ETFs are actively managed. Meaning any position in the ETF is backed by research and its future potential. As long as the investment objectives are being met, the company will be on the ETF else they are going to find another opportunity. This is different from an ETF that tracks an index like S&P500 where the focus is just to match the performance of the underlying index instead of making investment decisions based on quantitative research
#4 2020 proved that ARK is invested in the right areas. Moving forward working remotely will be part of the work culture. Companies has realized the importance of cloud, cybersecurity, digital contracts, and just work from anywhere culture. We are just getting started and companies that are innovating in the work from anywhere culture make ARK ETFs
#5 Allows you to further diversify. If you compare the Top 10 holdings in TQQQ and TECL vs some of the popular ARK ETFs, you get access to a lot of heavy hitters and popular growth names with little to no overlap

Ok, so talk is cheap. It’s easy to talk about how great ARK is but am I doing something about it. I am allocating 20% of my portfolio into 3 ARK ETFs
1. Innovation ETF – If you want a little bit of every innovation platform in ARK portfolio, ARKK is the ETF. They call this one their signature ETF
2. Genomic ETF – ARKG targets companies focused on DNA sequencing, gene editing, CRISPER, therapeutics and molecular diagnostics. That all made sense, right? Imagine a scenario where you can predict cancer at stage 1 and proactively curb it. It focuses on healthcare, pharmaceuticals and everything that enhances human lives. According to Cathie, this space is the next Tesla in next 5 years
3. Fintech ETFs – If you are not hearing about Block Chain, Bitcoin, Digital Wallets, Square, PayPal and Fintech companies like RobinHood and M1Finance, you are definitely living under a rock. I think we are just getting starting in this space. Imagine a world where you phone is your bank

I think a hybrid strategy where you invest in both can 1. Further diversify your portfolio 2. better spread the investment risks and 3. If all goes right, maybe offer you exponential growth

VIDEO FOOTAGE SOURCE (Fair Use)
Bloomberg: https://www.youtube.com/watch?v=kfhgbZBWgBE&t=15s&ab_channel=BloombergMarketsandFinance
Ark-Invest - https://ark-invest.com/
Singularity University - https://www.youtube.com/watch?v=eE6u67Ph768&t=312s&ab_channel=SingularityUniversity

INVESTMENTS
Open new M1Finance account (get cash): https://m1.finance/0ulBJlVUTwr9
Open new Robinhood account (get sticks): https://join.robinhood.com/rajivm23
View my Portfolio: https://drive.google.com/file/d/1_QMHvlj3jeDTJKm44j8oKWbMaiNzjIb4/view?usp=sharing

CHANNEL DESCRIPTION - On Think Finance, you will find investment ideas, money management tips, real estate strategies, retirement tips, and ways to generate passive incomes and wealth.

Hi everyone, my name is Raj and my goal is to share ideas, learn from others and in the process help each other. If stocks, retirement, real estate, money, and personal finance are areas that interest you, do consider subscribing.

DISCLAIMER - I am not a Financial Adviser or Tax Professional, the information provided is my personal opinion and should not be considered professional advice. Ideas discussed on the channel are actions I am personally taking to hit my financial aspirations and not professional advice. I'm not responsible for any monetary gain or loss that may occur following information on the channel.

SUBSCRIBE - https://www.youtube.com/channel/UCqvXd95xFjrtkGcT01JuUIQ?sub_confirmation=1

Видео Are ARK ETFs the new Leveraged ETFs? Next Tesla (per Cathie) канала Think Finance