Innovative ideas and technologies should drive global growth, now more than ever. Investors need to be ready to capitalize on rapidly changing market dynamics and breakthrough innovations.
In the upcoming webcast, Making the Case for Innovation: Rethinking Traditional Asset Allocation, Renato Leggi, Client Portfolio Manager, ARK Invest; and Rebecca Burke, VP, National ETF Sales, Resolute Investment Managers, will dig deep into what innovation really means, and why financial advisors should start thinking of “innovation” as an asset class worthy of its own allocation in a diversified global portfolio.
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.
The actively managed fund includes companies that merge healthcare with technology and capitalize on the revolution in genomic sequencing. These companies try to understand better 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 on 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.
Investors can look to the ARK Industrial Innovation ETF (NYSEArca: ARKQ), ARK Web x.0 ETF (NYSEArca: ARKW), and ARK Genomic Revolution Multi-Sector Fund (NYSEArca: ARKG) to target the three innovative segments separately. The ARK Industrial Innovation ETF captures the converging industrial and technology sectors, capitalizing from autonomous vehicles, robotics, 3D printing, and energy storage technologies. The ARK Web x.0 ETF targets next-gen internet innovations like artificial intelligence, cloud computing, cryptocurrencies, and blockchain technology. Lastly, the ARK Genomic Revolution Multi-Sector ETF tracks the convergence of tech and health care.
ARK Invest also came out with the ARK Fintech Innovation ETF (ARKF) to help ETF investors capitalize on the burgeoning fintech industry that provides innovative financial solutions in a digital age. ARKF invests in equity securities of companies that ARK believes are shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs.
Financial advisors who are interested in learning more about opportunities through innovation can register for the Thursday, May 14, webcast here.