After making a call a few years ago, Cathie Woods has gone from “crazy lady” that Tesla would be worth more than $3,000 per share to investing superstar after her prediction came true in just a few years. Now she is entering into a whole new, truly unexplored realm with her newest ARK Invest Fund, the ARK Space Exploration & Innovation ETF (ARKX).
The first time I heard of this ETF, I was super interested in the idea that I could invest in the hot space exploration companies in a nicely bundled package without having to cherry-pick the winners and losers of this industry during its infancy. See, with most new or newer industries, a lot of the early companies don’t make it, while just a few of those first companies in the industry are the ones that go on and dominate the industry for years to come. But, how do you know when things are just getting started which company is going to go bust and which is going to be a big winner?
So, industry-specific Exchange Traded Funds help solve this problem because they allow you to invest in all the companies operating in that industry while spreading out the risk. And since space exploration, from a private business side, is still very young, this is the perfect way to play the Space industry. Continue reading "ARK Space ETF: The Good And The Bad"