Is ARKK leveraged? Are they buying calls instead of simply long stock? If so, then it's not fair to compare them to leveraged funds. ARKK is still way ahead of the S&P from the bottom (March 16, 2019).
is Cathie Wood’s fund in trouble?
- Thread starter gunner_trader
- Start date
Is ARKK leveraged? Are they buying calls instead of simply long stock? If so, then it's not fair to compare them to leveraged funds. ARKK is still way ahead of the S&P from the bottom (March 16, 2019).
Only because ARKK crashed more. Lost almost 50% in March 2020.
If you ignore the March 2020 sell off and look at the pre covid prices. S&P is currently up about 40%, from pre covid highs, AARK is up about 50%, not a lot of difference.
If there was 3X ARKK it would have been up 4.7^2 = 2209% (given all the volatility these 3X ETFs always become 2X ETFs in my experience). Actually FNGU from the March 2020 to Feb 2021 was the most amazing ETF even better than the SOXL.
The problem with the FANG+ index is that it has some of the ARKK stocks as well so if you watch it daily there is a lot of correlation when the ARKK gets hammered. Of course it benefited from the 11 months following the bottom of March 2020. Its not just the original FAANG.
ARKK is a mid-cap growth ETF not a large-cap one so the closest comparison is the Vanguard VOT ETF. It still beats the VOT over the mid & long term. The issue is that there is so much volatility its risk-adjusted return will always be worse.
I agree that she is a long term investor and not a trader. She's a true believer which makes sense given her religious & political leanings. Her underperformance since the 2/16/21 peak is shockingly bad:
ARKK -41%
VOT +10%
She is not a momentum investor but an investor in hyper growth stocks. Once the story is recognized most of the gains are gone. Inflation & higher rates won't help her either. What she really needs is a return to deflation or at least disinflation which is more likely.
The problem with the FANG+ index is that it has some of the ARKK stocks as well so if you watch it daily there is a lot of correlation when the ARKK gets hammered. Of course it benefited from the 11 months following the bottom of March 2020. Its not just the original FAANG.
ARKK is a mid-cap growth ETF not a large-cap one so the closest comparison is the Vanguard VOT ETF. It still beats the VOT over the mid & long term. The issue is that there is so much volatility its risk-adjusted return will always be worse.
I agree that she is a long term investor and not a trader. She's a true believer which makes sense given her religious & political leanings. Her underperformance since the 2/16/21 peak is shockingly bad:
ARKK -41%
VOT +10%
She is not a momentum investor but an investor in hyper growth stocks. Once the story is recognized most of the gains are gone. Inflation & higher rates won't help her either. What she really needs is a return to deflation or at least disinflation which is more likely.
People read the blip in the markets like women reading the gossip papers, value does not change, the numbers gossip rumors of a fall or rise, they rise every time they fall, they shine every time it sets, all the time...then again, 40 years is 40 years ago, LOL they're praying for the downfall, but the only thing that falls is the rain on them every winter & summer...
You have to read a riddle more than once for it to set in, what's a change for nothing that changes? Then again people have been fighting over names for a very long time, just pick the winning name, the one that has been winning since the fighting started {all} & :0: as it stands...
Ok I get it. You are not trying to be understood because you will be found, as the emperor was, with no clothes.
Disruptive technology fund. Innovation funds. Autonomous technology and robotics fund.
Lots of fancy marketing.
Lots of fancy marketing.