Ark Invest ETFs

[Time-to-retire]

The ARKW looks very interesting , but I think ARKK is more generic( a little of everything and more liquid). So I'm leaning towards the latter as can only DCA 1.

Nice!! Yes, looking at liquidity is sometimes important.

For more 'mainstream' internet and cloud computing, there are options of:

O'Shares Global Internet Giants ETF (NUSE: OGIG)
First Trust Cloud Computing ETF (NYSE: SKYY)

 

[YouHeypiCanLiao]

Nice!! Yes, looking at liquidity is sometimes important.

For more 'mainstream' internet and cloud computing, there are options of:

O'Shares Global Internet Giants ETF (NUSE: OGIG)
First Trust Cloud Computing ETF (NYSE: SKYY)

more choices cropped up
https://sg.finance.yahoo.com/news/tech-etfs-stocks-outperforming-2020-150003275.html

 

[Time-to-retire]

more choices cropped up
https://sg.finance.yahoo.com/news/tech-etfs-stocks-outperforming-2020-150003275.html

The choices for ETFs are endless!! Trying to identify 'good' ones among many is quite challenging when there are similar sector ETFs offered by different companies.

Another strong area is semiconductors:

VanEck Vectors Semiconductor ETF (SMH)

 

[YouHeypiCanLiao]

The choices for ETFs are endless!! Trying to identify 'good' ones among many is quite challenging when there are similar sector ETFs offered by different companies.

Another strong area is semiconductors:

VanEck Vectors Semiconductor ETF (SMH)

I think the 2 ARK that I mentioned are OK. Just stick to that for some extra boost in the portfolio

 

[Han Shot First]

Got see, but they don't cover the companies/tech I am looking at.

Which companies/tech are you looking at?

 

[reddevil0728]

Nice!! Yes, looking at liquidity is sometimes important.

For more 'mainstream' internet and cloud computing, there are options of:

O'Shares Global Internet Giants ETF (NUSE: OGIG)
First Trust Cloud Computing ETF (NYSE: SKYY)

The choices for ETFs are endless!! Trying to identify 'good' ones among many is quite challenging when there are similar sector ETFs offered by different companies.

Another strong area is semiconductors:

VanEck Vectors Semiconductor ETF (SMH)

cannot compare ARKs to other more general tech etfs.

it's like comparing apple to orange

 

[Han Shot First]

The ARKW looks very interesting , but I think ARKK is more generic( a little of everything and more liquid). So I'm leaning towards the latter as can only DCA 1.

For these Ark Invest ETFs, is it better to DCA or do a lump sum? Or use some other strategy?

 

[reddevil0728]

For these Ark Invest ETFs, is it better to DCA or do a lump sum? Or use some other strategy?

ARK is like a 5y time horizon kind of etf (they said somewhere). that being said, whether lump sum or dca strategy is less of counter specific, but really about how much risk and returns you want out of it?

no right or wrong, you will only know on hindsight

 

[YouHeypiCanLiao]

ARK is like a 5y time horizon kind of etf (they said somewhere). that being said, whether lump sum or dca strategy is less of counter specific, but really about how much risk and returns you want out of it?

no right or wrong, you will only know on hindsight

from what I read...
conservative = DCA

BUT

bull run = lumpsome , else DCA

 

[reddevil0728]

from what I read...
conservative = DCA

BUT

bull run = lumpsome , else DCA

that goes without saying for every other counters

 

[Han Shot First]

I have a hypothetical question.

ARKK ETF's TER (total expense ratio) is 0.75%. Suppose it is higher. At what (hypothetical) TER threshold percentage would you think it could be too expensive to invest in this ETF?

 

[reddevil0728]

I have a hypothetical question.

ARKK ETF's TER (total expense ratio) is 0.75%. Suppose it is higher. At what (hypothetical) TER threshold percentage would you think it could be too expensive to invest in this ETF?

Firstly, this is an actively managed ETF, not a passive 1, hence you will expect the expense ratio to be higher.

secondly, don't really too much into expense ratio when you are investing into "different theme" of ETF. if the ETF is of the same theme, e.g. you want to invest into an ETF that focuses on cloud computing, then yes, comparing the expense ratio of the diff ETFs in the same theme makes sense.

In the case of ARK ETFs, are there any other remotely close ETFs of the same theme to be compared? if not TER is no longer a concern.

What you should be concerned is about the returns.

if it can give you returns of 10+, 20+% even with expense ratio of 0.75%, will you choose another ETF with expense ratio of 0.09% but returns is like 2%????

don't give up the whole forest for one tree.

 

[Han Shot First]

Yes, I know ARKK is an actively managed ETF so of course, its TER is expected to be higher than that for a passive index ETF e.g. FTEC (TER = 0.08%). In fact, I think 0.75% is relatively inexpensive for an actively managed fund.

However, my hypothetical question still stands. At what TER threshold would one start to think twice about investing in this ETF? e.g. 1.5%? or 2%? or even higher.

 

[reddevil0728]

Yes, I know ARKK is an actively managed ETF so of course, its TER is expected to be higher than that for a passive index ETF e.g. FTEC (TER = 0.08%). In fact, I think 0.75% is relatively inexpensive for an actively managed fund.

However, my hypothetical question still stands. At what TER threshold would one start to think twice about investing in this ETF? e.g. 1.5%? or 2%? or even higher.

Depends on the return. Yes, past performance is not an indication of future performance, but past performance would have to justify the expense ratio.

I think there are saying that anything more than 1.5 is really expensive

 

[Han Shot First]

I just did a stock price chart comparison of ARKK ETF versus Apple (symbol: AAPL) over the last 6 months.

Guess what?

Both securities performed about the same (55.65%) after 6 months.

And over 1 year? AAPL outperformed ARKK! (133.95% versus 96.74%)

 

[reddevil0728]

I just did a stock price chart comparison of ARKK ETF versus Apple (symbol: AAPL) over the last 6 months.

Guess what?

Both securities performed about the same (55.65%) after 6 months.

And over 1 year? AAPL outperformed ARKK! (133.95% versus 96.74%)

You compare an individual stock to an ETF???

 

[YouHeypiCanLiao]

that goes without saying for every other counters

hmm no leh.. some ppl just DCA all the way

 

[reddevil0728]

hmm no leh.. some ppl just DCA all the way

it is about perspective right

 

[pm_me_ur_noods]

I have a hypothetical question.

ARKK ETF's TER (total expense ratio) is 0.75%. Suppose it is higher. At what (hypothetical) TER threshold percentage would you think it could be too expensive to invest in this ETF?

Usually what i would do is plot it out, if I put 10K in both at the same time, after X years, how much do I get?

Past is not indication of present blah blah but just to get an idea.

For example if i get 15k with a 0.2% TER, and 35k with a 0.75% after X years, kinda a no brainer at this point unless you don't believe the same fund will make as much in the future.

 

[Han Shot First]

You compare an individual stock to an ETF???

And your point is?

Apple has many businesses under Apple. And I think its investments (in companies outside of Apple with Apple as a holding company or investment company) are probably at least twenty times or more than that of Ark Invest's total AUM (let alone ARKK's AUM).