ARK Investment Management’s ARK ETFs have been getting quite a considerable amount of interest in our SeedlyCommunity, especially with their stellar investment performance.
What exactly are ARK ETFs? Should you even consider buying them?
Let’s answer those questions and more right here to clear your doubts!
What Are ARK ETFs?
An exchange-traded fund (ETF) is an investment commonly holding a collection of stocks often tracking an underlying index.
For example, the Straits Times Index (STI) ETF tracks the fundamentals of the STI, which consists of 30 largest and most liquid companies listed in Singapore.
The STI ETF is a passive ETF as it merely mirrors the index. Investors who buy into such an investment are unable to beat the market but would get market returns.
On the other hand, there are active ETFs and the ARK ETFs, which have been popular of late, mostly belong to this camp.
Active ETFs, as the name might suggest, are actively-managed and have an aim to give investors market-beating returns....
