ARK Investments ETFs Have Been Top Performers

After a historic November, the best month the market has seen since January 1987, I found an interesting Exchange Traded Fund trend; one ETF manager has three of the top ten best performing ETFs of 2020. Furthermore, what makes this one fund manager even more impressive is this performance when you run the screener and leave leveraged funds in play, even though none of the ARK Invest funds are leveraged products themselves.

So not only are these three funds not leveraged and therefore exposing you to more risk than you may want, but they are beating other leveraged funds. One of the main ways ARK is likely to show excellent results in 2020 is its different way of thinking about investing. They state on their website this belief.

"Not Your Traditional Investment Manager

The world is changing rapidly. While traditional investors seek safety in benchmarks and passive strategies, ARK believes this behavior is counterproductive. Innovation is causing disruption and the risks associated with the traditional world order are rising. We strive to invest at the pace of innovation"

The fund managers certainly see themselves as a little different than others on Wall Street, and this year has undoubtedly proven what they are doing is beating the rest of the pack.

So, how great was the performance of Ark's fund thus far? Continue reading "ARK Investments ETFs Have Been Top Performers"

Should You Own ETFs In A "Stock Pickers Market"

Most Wall Street participants believe 2019 will be a “stock pickers” year; So how will that affect Exchange Traded Fund investors?

Well first off, what is a “Stock Pickers” market or year? That is a market in which to make a decent return; investors will need to pick individual stocks, not just buy the market as a whole or an index such as the S&P 500 or Dow Jones. At this point, most Wall Street analysts believe the major market indexes will end the higher just slightly higher. In mid-February, Goldman Sachs analyst posted a note indicating they think the S&P 500 will only climb to 3,000 by the end of the year, but the next few months could be flat.

Vanguard went a little further and said it believes the market will only return roughly 5% median annualized return over the next 10 years. Vanguard’s opinion paints an even worse picture than Goldman’s and hints at the idea that investors will need to be “stock pickers” for the next decade if they want to see returns greater than 5% annualized.

So, the experts are telling us that investors need to cherry pick individual stocks if they want to make a real-return greater than a few percent over the next year or maybe more. But what if they don’t know how to find and pick market-beating stocks, they need not worry because that is why actively managed ETFs where created. Continue reading "Should You Own ETFs In A "Stock Pickers Market""