As technological advancements continue unabated, investors have an opportunity to capture growth in new and developing areas of our economy. But how do you identify and calculate the innovation that might have the most profound impact?
On the upcoming webcast, How Investors Can Identify Disruptive Innovation and What it Can Add to a Portfolio, Catherine Wood, Chief Investment Officer and CEO of ARK Invest, and Tom Staudt, Chief Operating Officer for ARK Invest, will discuss the criteria used to identity disruptive innovation and how financial advisors can adapt without being left behind.
For example, ARK Invest’s flagship ARK Innovation Fund (NYSEArca: ARKK) seeks to invest in the cornerstone companies taken from healthcare, technology and industrial sectors that focus on investing in disruptive innovation. Such companies may include ones that benefit from big data, cloud computing, cryptocurrencies, the sharing economy, genomic sequencing, molecular medicine, agricultural biology, 3D printing, energy storage, and autonomous vehicles.
Tech That Changes the Way The World Works
“ARK defines ‘disruptive innovation’ as the introduction of a technologically enabled new product or service that potentially changes the way the world works,” according to ARK Invest.
The actively managed fund includes companies that merge healthcare with technology and capitalize on the revolution in genomic sequencing. These companies try to better understand how biological information is collected, processed, and applied by reducing guesswork and enhancing precision; restructuring health care, agriculture, pharmaceuticals and enhancing our quality of life.
The technology component focuses more in the next generation of internet names. These tech companies benefit from the shifting bases of technology infrastructure to the cloud, enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media.
Lastly, the industrial exposure covers a so-called new industrial revolution or advances in autonomous vehicles, robotics, 3D printing, and energy storage technology that are enhancing productivity, reducing costs, and transforming the manufacturing landscape.
Top holdings include Tesla 9.9%, Stratasys 6.6%, Invitae 6.5%, intellia Therapeutics 6.4% and Twitter 4.3%. Top sector weights include information technology 40.1%, health care 37.5% and consumer discretionary 17.6%.
Financial advisors who are interested in learning more about disruptive technologies can register for the upcoming webcast on Tuesday, September 25 here.