Due to its large concentration in high-growth tech businesses, the Ark Innovation ETF may outperform the market over time, but investors should expect volatility.
2. Ark Q Autonomous Technology and Robotics ETF The Ark Autonomous Technology and Robotics ETF manages $914 million, substantially less than the flagship fund.
It holds 36 equities focused on autonomous transportation, 3D printing, green energy, space exploration, robotics, and automation. The fund is a good approach to invest in AI because many developing sectors use it.
Tesla shares dominates the Ark Autonomous Technology and Robotics ETF due of its full self-driving software. However, most investors may not know Kratos Defense and Security or Teradyne.
Kratos makes commercial and military gear and software for unmanned aerial and ground vehicles, space communications, and launch systems. Teradyne develops industrial automation tools to enable semiconductor and wireless solution manufacturers assess product quality.
Aside from the Ark Autonomous Technology and Robotics ETF's top five holdings, Nvidia, Alphabet, and AMD are popular AI stocks
The ETF has fallen 46% from its all-time high in early 2021 for similar reasons as the Ark Innovation fund, but it has outperformed the S&P 500 over the long term with a 12% compound annual return since 2014.
Again, investors must be prepared to endure volatility when buying an ETF that is so focused on esoteric technology sectors, knowing that it can yield excellent returns in the long run.
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