Many growth-heavy investors might have felt it when the Nasdaq 100 slipped close to 8% as part of a tech-driven correction.
Nothing against the Ark Innovation ETF (ARKK), which is having a glorious year, now up more than 35% year to date and over 78% in the last two years.
I am a huge fan of Cathie Wood. I am also an ardent critic.
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This actively-managed exchange-traded fund (ETF) primarily focuses on investing in domestic and foreign equity securities of companies that align with its thematic goal of disruptive innovation. By earmarking at least 65% of its assets towards such ventures, the fund taps into the potential of novel and transformative businesses across both developed and emerging markets. Beyond direct investments in foreign equities, the fund also engages with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), providing a diversified approach to its theme. Given its specialized focus, the fund operates as a non-diversified ETF, concentrating on sectors and firms it believes embody the future of innovation.
The core of the fund's strategy lies in its investment in equity securities of domestic and foreign companies that are seen as central to its theme of disruptive innovation. This includes a strategic allocation of assets to both emerging and developed markets to tap into diverse innovation ecosystems.
By diversifying its portfolio across companies in both developed and emerging markets, the fund aims to leverage global innovation trends and growth potentials, ensuring a broad exposure to various economic environments and technological advancements.
To further its reach in foreign equity markets, the fund invests in ADRs and GDRs. These instruments allow the fund to hold shares in overseas companies, offering a practical means to invest in foreign innovations without the complexities of direct investments in foreign markets.