Is The ARK Innovation ETF (ARKK) a Buy Right Now?

After two straight years of losses throughout 2021 and 2022, Cathie Wood’s Ark Invest’s flagship ARK Innovation ETF (ARKK – Get Rating) is finally back on the radar, up more than 30% year-to-date. The ETF focuses on companies that exhibit “disruptive innovation,” technologically enabled new products or services, and technological advancements that change how the world works.

With the significant potential of disruptive innovation firms that make up the ARKK fund, investing in this ETF could be wise this month for solid returns.

ARKK is an actively managed Exchange Traded Fund (ETF) that seeks to generate long-term growth of capital by investing in domestic and foreign equity securities of companies that exhibit disruptive innovation. The fund is managed by the team at Ark Invest, an advisory firm led by well-known investor Catherine Wood.

Companies within ARKK rely on or benefit from the development of new products or services, technological improvements, and advancements in scientific research relating to the areas, including Artificial Intelligence (AI), DNA sequencing, automation, robotics, energy storage, and fintech innovation.

Ark Invest CEO Cathie Wood is considered a star stock-picker who advocates investing in disruptive technologies and reportedly shot to fame in 2020 when all her six ETFs saw astronomical returns of over 100%. Despite poor performance last year, her flagship fund, ARKK, is up 34.6% year-to-date, primarily driven by bets on Elon Musk-led company Tesla Inc. (TSLA).

TSLA is Ark Innovation’s top holding. According to Cathie Wood, the company is on the cutting edge of AI. “Tesla… probably is one of the biggest beneficiaries of artificial intelligence and it is the only auto manufacturer to design its own AI chip. And we do believe that it is in the pole position to be the leader in…

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