Stockchase Insights ARK Innovation ETF ARKK-N BUY ON WEAKNESS Mar 24, 2023

Sell ARKK to add to ZQQ? Good idea. ZQQ is a broader universe. ARKK is more of an innovator-type fund, lots more risk. Whole semi side is very difficult. Oversupply and under-demand, and so the price of memory chips is coming down. He'd recommend trading the ZQQ.

Down 77% since highs. Disruptive names that were the flavour of the day, but now affected by rising rates. Names with high multiples, high growth. Can only perform well in a falling interest rate environment. Possible tax-loss sale.

ARKK vs. FNND Such growth stocks are vulnerable to inflation and the discount rate. They will struggle and have already declined a lot, and shares are still not cheap. There's not much difference between these ETFs. ARKK has performed better this year, so he skews towards that.

She was the world's greatest stockpicker in 2020 when tech ruled. Not so these days. Why? Her portfolio lacks diversification, concentrated in only a few names.

ARKK went all-in into high-growth, high-risk tech stocks, but these trade as a group. So, in 2020 ARKK was the number-one fund, but struggled in 2021 and was far from the best in 2022. A fund or collection of stocks that is not diversified will eventually stumble.

Had its day in the sun a few years back. A disruptive ETF, not like your typical large-cap ETF. A lot of the names are expensive; average price to sales is 5.3x, pricey. Compare that to the S&P trading at just under 3x price to sales.