Innovative and new products help shape the road to the future, and as these technologies experience rapid changes, exchange traded fund investors can also focus on these growth opportunities through targeted strategies.
For example, ARK Invest has a number of actively managed ETFs, which have outperformed the broader markets since inception. The ETFs try to generate long-term capital appreciation and outperformance with a relatively low correlation to traditional investment strategies by investing exclusively in disruptive innovation.
Specifically, the ETFs look to companies that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the Genomic Revolution, so-called Web x.0 and Industrial Innovation.
“Everything we do is focused on disruptive innovation,” Tom Staudt, COO and Director of Product Development for ARK Invest, said at the Inside ETFs 2018 conference. “We think there is a lot of exciting things happening in the economy right now, arguably more than ever before happening at the same time in history, and we think that investors can take advantage of that rapid change taking place.”