The presidential election is over, and Donald Trump officially will return to the White House again on Jan. 20 to begin a new four-year term.
But while Trump may have won the presidency, the real winners of this election are the corporate business owners who will benefit from the tax cuts and deregulation promised by him once his new administration starts. The companies that will benefit the most from this hyper-deregulated environment are the innovators that offer technology and services that aim to enhance the world as we know it.
These companies invest in technologies such as artificial intelligence and cryptocurrencies. Their corporate leaders feature visionaries like Elon Musk. Of course, this also makes now a primary time to invest in these revolutionary companies. One way to do just that is to consider the ARK Innovation ETF (ARKK).
First launched in 2014 by ARK Investment Management, ARKK seeks out long-term capital growth from companies that are either involved with or benefit from disruptive innovation. ARKK defines “disruptive innovation” as a technologically enabled new product or service with a potential so great that it could change the way the world works.
The ARKK portfolio focuses on companies involved in genomics, automation, transportation, energy, artificial intelligence and materials, shared technology, infrastructure and services and other technologies. ARKK’s proprietary macroeconomic and fundamental research, aimed at assessing company potential, drives security selection and weighting.
Top holdings in this fund include Tesla, Inc. (NASDAQ: TSLA), Roku, Inc (NASDAQ: ROKU), Coinbase Global, Inc. (NASDAQ: COIN), Roblox Corp. (NYSE: RBLX), Palantir Technologies Inc. (NYSE: PLTR), Robinhood Markets, Inc. (NASDAQ: HOOD), CRISPR Therapeutics AG (NASDAQ: CRSP) and Block, Inc. (NYSE: SQ).
As of Nov. 13, ARKK has been up 24.04% over the past month and up an astounding 39.53% for the past three months. It is currently up 10.46% year to date.
Chart courtesy of www.stockcharts.com.
The fund currently has $6.33 billion in assets under management and an expense ratio of 0.75%.
While ARKK has the potential to revolutionize your investments, it may not be a positive innovation for every portfolio. It is important to consider the risks and potential returns carefully before making any investment decisions.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.
