NYSEARCA:ARKK

43.24
0.09 (0.20%) 1d
0

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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

According to the experts, ARK Innovation ETF (ARKK-N) had a strong performance in 2020 due to its high-growth, high-risk tech stock focus, but struggled in 2021 and 2022. The lack of diversification in its portfolio, concentrating on only a few names, led to its downfall. The reviews suggest that a non-diversified fund or collection of stocks is prone to stumble eventually. The consensus is that ARKK-N's lack of diversification contributed to its performance decline in recent years.

Consensus
Non-diversified
Valuation
Overvalued
DON'T BUY
ARK Innovation ETF
Trading advice

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.

E.T.F.'s
DON'T BUY
ARK Innovation ETF

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.

E.T.F.'s
BUY ON WEAKNESS
ARK Innovation ETF
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

 The ARK funds have likely bottomed, on the basis that interest rates and inflation have peaked. Although, even if the fund has truly bottomed, it may trade sideways for longer than an investor can wait, and we would not expect the parabolic action that it saw in 2020 to occur anytime soon. The underlying companies in the fund are growing fast, but valuations are still on the high end, and we feel it will take a substantial shift in market sentiment to a 'risk-on' environment to see material gains in the name. With that said, we think the name can do well over a long timeframe, and we think investors will need to be patient here.  
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E.T.F.'s
WEAK BUY
ARK Innovation ETF

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.

E.T.F.'s
BUY
ARK Innovation ETF
Good research into tech and believes is a quality fund. Long term will be good investment. Short term, is tricky to value with many names without cash flow. Investors should expect lots of volatility.
E.T.F.'s
SELL
ARK Innovation ETF

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.

E.T.F.'s
SELL
ARK Innovation ETF

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.

E.T.F.'s
BUY
ARK Innovation ETF
A benchmark for growth risk in the economy. Vast majority of market correction is priced into this fund (exception of Tesla). Still risk in this fund even though Cathie Wood does excellent job. Current price is presenting buying opportunity.
E.T.F.'s
BUY
ARK Innovation ETF
That ETF is a benchmark for growth risk. Downgrade of COIN today had a big impact. Recently added some to his long-term growth portfolio.
E.T.F.'s
premium

It's a Monthly Gems opinion which is available only for Premium members

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
ARK Innovation ETF

Tesla is ARK's largest holding at 8.69% which has bounced from its 52-week low of $700 on February 24 to the current $864 (March 1). Its PE has always been astronomical (176x), but buyers of this stock suspend ordinary stock metrics in favour of faith in CEO Elon Musk and his vision of the automobile future. That faith remains. Expect Tesla to keep climbing. You can't say that about ARK's second-biggest holding, Teladoc, which is tanking as the pandemic fades and consumers rely on telephone medical services less. Streamer Roku was also considered a pandemic play and has oversold, but that too is recovering since bottoming on February 24. Other big holdings in ARK include Block (Square) whose recent numbers have launched a renaissance in a stock once left for dead.

E.T.F.'s
WATCH
ARK Innovation ETF
Last year, there was a stellar year where it almost tripled. As Feds raised interest rates in 2018-19, the ETF was flat to down, even though there are good companies. Would look at it in the $60 range.
E.T.F.'s
BUY
ARK Innovation ETF
Volatility notes by Mark Sebastian, technical analyst Usually the VIX and S&P trade in opposite directions. When this pattern breaks, it signals the market is changing course. On Oct. 21, the VIX bottomed at 15 while the S&P was at 4,550. In November, the S&P continued to rally. Strangely, the VIX rallied too, a classic sign that the market was getting too hot and headed for a beat-down. A few weeks later, the S&P peaked and the VIX exploded. On the Nov. 18 peak to last week's lows, the S&P fell only 4%, while the VIX shot up 17.59 to 31, because the sell-off was concentrated in the high-growth tech Nasdaq rather than the wider S&P. In the same time period, it took only 10 days for ARKK to put a top out after the VIX bottomed on Oct. 21, then ARKK gradually sank from 4125 to $107 as the VIX rose from 16 to almost 20. is down 17% YTD. When Omicrom hit headlines on Black Friday, the VIX exploded and ARKK rolled over as the market liquidated all manner of stocks. Investor sell tech stocks, which triggers people to sell ARKK, which further depresses the stocks in that ETF. However, now ARKK is recovering as the VIX declines and calms. The VIX says this market recovery is indeed real. Today, the S&P was flat, but the VIX sank rapidly; to Sebastian this means that as long as the VIX keeps falling it will lead to the Santa Claus rally. The S&P could rise as high as 5,000. He agrees.
E.T.F.'s
DON'T BUY
ARK Innovation ETF
They are a provider of investment services in the states and have been ahead of the curve on this whole digital transformation. They had a couple of successful ETF products. There are a number of companies they held that he would be uncomfortable holding. It is a way to get a basket of the kinds of companies they hold.
E.T.F.'s
COMMENT
ARK Innovation ETF

Run by Cathie Wood, the mnost successful money manager on 2020 who invests in high-growth tech stocks. Their glaring flaw was a lack of diversification, which is why her ETF hot hammered this year when tech fell out of fashion. In May, Ark saw negative fund flows for the first time in over a year. ARKK is one Wood's largest ETFs. ARKK is down 5% YTD while the indexes are up. Her holdings like Zoom Video are considered Covid stocks. Wood, though, remains a wizard. Her small funds have performed better than the benchmarks and remains a fantastic long-term performer. But the era of Wood propping up these hyper-growth stocks with her massive inflows is over.

E.T.F.'s
DON'T BUY
ARK Innovation ETF
Anybody's guess where it's going, including Cathie Wood. She plays fast, active management. High growth, highly speculative, they-don't-make-any-money-yet type of trade. Very, very volatile. Too volatile for him. Lots of people betting against her. Make sure it's not more than 5% of your portfolio.
E.T.F.'s
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ARK Innovation ETF(ARKK-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 2

Stockchase rating for ARK Innovation ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

ARK Innovation ETF(ARKK-N) Frequently Asked Questions

What is ARK Innovation ETF stock symbol?

ARK Innovation ETF is a American stock, trading under the symbol ARKK-N on the NYSE Arca (ARKK). It is usually referred to as AMEX:ARKK or ARKK-N

Is ARK Innovation ETF a buy or a sell?

In the last year, 2 stock analysts published opinions about ARKK-N. 0 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for ARK Innovation ETF.

Is ARK Innovation ETF a good investment or a top pick?

ARK Innovation ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for ARK Innovation ETF.

Why is ARK Innovation ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is ARK Innovation ETF worth watching?

2 stock analysts on Stockchase covered ARK Innovation ETF In the last year. It is a trending stock that is worth watching.

What is ARK Innovation ETF stock price?

On 2024-06-24, ARK Innovation ETF (ARKK-N) stock closed at a price of $43.235.