Targeted ETFs to Capitalize on Advancements in Disruptive Technologies

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Innovative and new products help shape the road to the future, and as these technologies experience rapid changes, exchange traded fund investors can also focus on these growth opportunities through targeted strategies.

For example, ARK Invest has a number of actively managed ETFs, which have outperformed the broader markets since inception. The ETFs try to generate long-term capital appreciation and outperformance with a relatively low correlation to traditional investment strategies by investing exclusively in disruptive innovation.

Specifically, the ETFs look to companies that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the Genomic Revolution, so-called Web x.0 and Industrial Innovation.

"Everything we do is focused on disruptive innovation," Tom Staudt, COO and Director of Product Development for ARK Invest, said at the Inside ETFs 2018 conference. "We think there is a lot of exciting things happening in the economy right now, arguably more than ever before happening at the same time in history, and we think that investors can take advantage of that rapid change taking place."

Investors can capture this rising opportunity through the ARK Industrial Innovation ETF (NYSEArca: ARKQ). ARKQ captures the converging industrial and technology sectors, capitalizing from the idea that autonomous vehicles, robotics, 3D printing, and energy storage technologies are enhancing productivity and reducing costs, stimulating significant unit growth, which should transform the manufacturing landscape.

Investors can also access more innovation-themed plays through the ARK Web x.0 ETF (NYSEArca: ARKW), ARK Genomic Revolution Multi-Sector Fund (NYSEArca: ARKG) and the ARK Innovation Fund (NYSEArca: ARKK). The ARK Web x.0 ETF focuses on next-gen internet innovations like artificial intelligence, cloud computing, cryptocurrencies, and blockchain technology. The ARK Genomic Revolution Multi-Sector ETF tracks the convergence of tech and health care. The ARK Innovation ETF is a catch-all for or a broader theme based on the investments across all of the firm’s three innovation themes.

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.

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