The ARK Invest exchange-traded funds (ETFs) are a group of index funds managed by Cathie Wood and her team. Cathie Woods is a stock trader that manages the ARK ETFS. An ETF is a group of hand-selected stocks that fall into one category such as cars, technology, and real-estate. These index funds are managed by certain individuals who take a percentage of profits each year.
Although these ETFs may seem like any other mutual funds, they are very unique because of the growth they possessed this year. Some of ARK’s ETFs have gone up more than 300% from March to January. There are seven actively managed ARK ETFs. Actively managed means that there is someone always changing the amount of stock they own in each company, adding new stocks, or removing old stocks. ARK also has two inactively-managed index ETFs, which have a significantly smaller ownership fee.
These ETFs have different focuses. Certain ETFs focus on industrial and manufacturing sectors, but others focus on biotechnology and other industries. One of ARK’s most popular ETFs is ticker symbol(an abbreviation for the stock) ARK because it has over 10% of its funds allocated in Tesla stocks. Many people have applauded Cathie Wood for this investment in Tesla as the major company has recently seen incredibly successful fiscal years. This decision eventually led ARK to have great returns in the overall market this past year.
