My thoughts on ARK Genomic revolution ETF (ARKG)
I bought into the Woodstock hype and chose to invest in the less talked about ARKG amongst all the ETFs that ARK has. I hold several tech stocks that are already overweight in several other ARK ETFs. However, I do not hold any positions that are a part of ARKG. I do not for-see buying any of the small or mid cap genomic stocks individually anyways. The due diligence that would go in researching them individually would be exhausting.
Healthcare was already a neglected and an underweight sector in my portfolio. This way I could completely go hands off healthcare.
Compared to other actively managed portfolios, the fees charged by ARK are much lower.
Even if I have a doubt that these companies may or may not do very well individually, my feeling is that a basket of 50 carefully selected ones are likely to outperform the SP500 index over the next 10y. Only if they do not get sold too soon by the fund manager.
The largest core holding in my portfolio is VOO. I see that there is very little overlap between the SP 500 index and ARKG. I use this tool to look for overlap between ETFs.
Disclaimer — Not to be construed as financial advice. I assume no liability for losses incurred as a part of your investing process. I would recommend that you seek advice from an actual professional advisor before investing. I do not work in finance and I am just an enthusiast with interest in money management and all my opinions are for informational purpose only.
