Cathie Woods and her ARK Invest group of funds are changing the way investors look at Exchange Traded Funds in a number of ways. Whether it's from the standpoint of high-performing funds or innovative investment strategies that are looking years or even decades down the road, what Cathie and her team are doing is extraordinary. But what may be the biggest and most important innovation ARK is bringing to the investment community is the transparency her funds have shown investors.
ARK Invest gives investors the stocks they are buying. Well, every fund does that. But what ARK does, is they give you their stock buys and sells on a daily basis. Yes daily.
Furthermore, they tell you the exact amount of shares they bought or sold, the amount of money they spent (which allows you to determine the average cost), and which one of the ARK funds the shares were bought or sold in.
This is a big change from the way most funds operate, in which they post quarterly or monthly their holding list, number of shares, and percent that the company makes up in the fund based on assets under management.
While what Cathie and ARK are doing is ideal, investors can still use the information other funds provide in order to ‘cherry pick’ stocks in certain industry’s that they believe will do better than others. While this idea may not be for all investors, it is something that investors who prefer to buy individual equities, as opposed to going down the ‘fund’ route, can still use ETFs and other funds to their advantage, without ever owning them. Continue reading "Using ETFs To Help You Cherry Pick Stocks"