Exchange Traded Funds (ETFs)

ETF Talk: Revolutionize Your Investments with This Innovative ETF

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).

Exclusive Three Defense Investments with Potential to Outperform

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.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Forecasts & Strategies, Tactical Trader, TNT Trader, Five Star Trader, Bullseye Stock Trader, and The Deep Woods. His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.