While disruptive innovation strategies may experience short-term volatility, ARK’s research shows that maintaining a long-term investment time horizon is critical for investors searching for potential returns. Innovation solves problems, and it is expected to transform human lives at an accelerated rate during the next five to 10 years.
In the upcoming webcast, Volatility is Not a Bad Word When You Have a Long-Term Time Horizon, ARK Invest’s Renato Leggi, client portfolio manager, and Thomas Hartmann-Boyce, client portfolio manager, will discuss the critical importance of having a long-term investment time horizon and why investors should not fear short-term losses or volatility.
ARK Invest’s flagship ARK Innovation Fund (NYSEArca: ARKK) seeks to invest in the cornerstone companies taken from the 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 better understand how biological information is collected, processed, and applied by reducing guesswork, enhancing precision, and improving our quality of life.
The technology component focuses on the next generation of internet names. These tech companies benefit from the shifting bases of technology infrastructure to the cloud, enabling mobile, 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 also look to the ARK Industrial Innovation ETF (NYSEArca: ARKQ), the ARK Web x.0 ETF (NYSEArca: ARKW), and the ARK Genomic Revolution Multi-Sector Fund (NYSEArca: ARKG) to target the three innovative segments separately. ARKQ captures the converging industrial and technology sectors, capitalizing from autonomous vehicles, robotics, 3D printing, and energy storage technologies. ARKW targets next-gen internet innovations like artificial intelligence, cloud computing, cryptocurrencies, and blockchain technology. Lastly, ARKG tracks the convergence of tech and healthcare.
ARK Invest also offers the ARK Fintech Innovation ETF (ARKF) to help ETF investors capitalize on the burgeoning fintech industry and capture 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 the long-term benefits of innovation can register for the Monday, February 7 webcast here.