The Anti-ARK (or Anti-Cathie Woods) ETF

Over the past few years, Cathie Woods has made a name for herself. It started with her ARK Invest flagship Exchange Traded Fund the ARK Innovation ETF (ARKK), which returned an astonishing 45% annually for five years straight. Her other Ark Invest funds had similar success, and regularly these funds would rank in the top 10 of the best performing non-leveraged equity ETFs investors could buy.

Cathie became more of a household name when she not only went on CNBC years ago and said she thought Tesla was a $2,000 stock (this was prior to Tesla splitting), and she was proven correct. When she made this claim, her Ark funds were doing well, but most investment insiders thought she was crazy and that her prediction for Tesla would never come true. So, when she was proven correct, everyone started watching what she was doing and either trying to copy her or attempting to bet against her.

Copying what she was doing was and still is easy since her fund publishes the daily trades they made during the previous session. Not only do they publish the stocks they sold and bought, but how many shares of each company they traded. For a time, the morning show on CNBC would review her previous days' trades and discuss whether or not they agreed with what her funds were buying and selling.

Some would say that Cathie's luck has now run out because while for years she had some of the top-performing ETFs, 2021 has not been so kind to her. Continue reading "The Anti-ARK (or Anti-Cathie Woods) ETF"

ARK Space ETF: The Good And The Bad

After making a call a few years ago, Cathie Woods has gone from “crazy lady” that Tesla would be worth more than $3,000 per share to investing superstar after her prediction came true in just a few years. Now she is entering into a whole new, truly unexplored realm with her newest ARK Invest Fund, the ARK Space Exploration & Innovation ETF (ARKX).

The first time I heard of this ETF, I was super interested in the idea that I could invest in the hot space exploration companies in a nicely bundled package without having to cherry-pick the winners and losers of this industry during its infancy. See, with most new or newer industries, a lot of the early companies don’t make it, while just a few of those first companies in the industry are the ones that go on and dominate the industry for years to come. But, how do you know when things are just getting started which company is going to go bust and which is going to be a big winner?

So, industry-specific Exchange Traded Funds help solve this problem because they allow you to invest in all the companies operating in that industry while spreading out the risk. And since space exploration, from a private business side, is still very young, this is the perfect way to play the Space industry. Continue reading "ARK Space ETF: The Good And The Bad"