How do you invest in disruptive innovation? There are a few options for investors: directly through companies or secondarily through stocks, bonds, and other methods. One option is to run your money as a venture capitalist (VC) and risk it all on one company; another is to take the more cautious approach and go after smaller deals. There are also investment funds that specialize in investing in disruptive innovations. Companies like Amazon have disrupted entire markets with their own innovations, becoming an industry unto themselves. If you would rather not research individual companies but still want exposure to exciting new technologies, ARK Invest ETFs might be just the thing for you.
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ARK Invest ETFs
ARK Invest ETFs is a clever set of investment tools that offer exposure to various innovative industries with little headache. The underlying holdings consist of the following stocks: Facebook, Alphabet (Google), Apple, Netflix, and Amazon. In addition to these classic tech companies, you can also find exposure to biotechnology and even robotics. It sounds like a hodgepodge at first, but these companies actually work together in complementary ways. For example, many biotech drugs rely on robotics for production; the industry is still in its infancy but has huge potential moving forward.
ARK Invest ETFs are set up in a way that allows investors to participate in disruptive innovation without thinking about individual companies. Instead, you can set up an account and open the floodgates on progressive investment strategies. The underlying holdings change over time to reflect changing technologies, but at the moment, they are all linked together by their higher than average growth potential. That means that if one company has problems, the others will likely flourish even more; it’s a bold strategy for disruption. And if one new technology comes along that you believe worth investing in, you can always trade ETFs for individual stocks if the exposure is not broad enough through the fund itself.
ARKK ARK Innovation ETF
The ARKK ARK Innovation ETF is a great way to invest in new and innovative technology stocks. The fund invests in Facebook, Alphabet (Google), Apple, Netflix, and Amazon, all technology leaders. This fund also invests in companies within the biotechnology and robotics industry- two sectors that have been disrupted by innovation. The fund returns have been good in recent years, but there is still a high risk of these investments.
ARKQ Autonomous Technology & Robotics ETF
ARKQ ETF is an Autonomous Technology & Robotics ETF. It offers investors exposure to the sectors of robotics, AI, and self-driving cars. The underlying holdings are heavy in robotics, including Kuka Robot Systems, ABB Group, and Denso Corporation. There are also stocks for AI software and hardware companies: AMAZON, Google, Apple, Microsoft, Baidu, and IBM.
ARKW Next Generation Internet ETF
The ARKW Next Generation Internet ETF invests in companies focused on the Internet of Things and cloud computing. The fund also invests in investing in Artificial Intelligence, Virtual Reality, and 3D printing. These companies all share some of the following traits: they aspire to make our lives more convenient or enjoyable; they enter emerging markets that lack infrastructure and make technology accessible to a wider audience.
Some examples of these types of investments are Microsoft (MSFT), Intel (INTC), Nvidia (NVDA), and Apple Inc. (AAPL). The competitive environment is changing rapidly, which means increased innovation at a faster rate for consumers. But it doesn’t just stop there- this type of investment also has the potential to disrupt entire industries.
ARKG Genomic Revolution ETF
The ARKG Genomic Revolution ETF invests in companies focused on the development of DNA sequencing and genomics. The fund also invests in biotech and pharmaceutical companies. In the 1990s, two presidential candidates fought tooth and nail to win the favor of biotech to support innovation- now we can all invest! These companies all share some common traits: they focus on early-stage research that may not yet have a clear path to success; they are likely working with limited resources to achieve their goals, and they tend to be risky investments.
Some examples of these types of investments are Gilead Sciences (GILD), Amgen (AMGN), Celgene Corp (CELG), Illumina Incorporated (ILMN), and Illumina Inc (ILSC). The investments are not limited to genetic sequencing. These companies are also involved in developing and making use of virtual reality, robotics, and artificial intelligence. As more products find their way to consumers through technological advances, these companies will likely continue to see success over the coming decades.
ARKX Space Exploration & Innovation ETF
The ARKX Space Exploration & Innovation ETF invests in companies focused on the development of space exploration and aerospace to develop new, innovative technology for humans. Companies such as SpaceX, Boeing, and Blue Origin all share the common traits of being innovators and innovating rapidly. They also experience dramatic growth over the coming years as we make progress towards getting into outer space.
As we move closer to exploring other planets through advancements in technology, more countries are investing heavily in these industries. For example, China has been investing heavily, not just within their own country. Still, internationally, there is a certain amount of competition with them as they challenge NASA’s reputation for innovation and cutting-edge technology.
As we begin to push off the Earth, this type of innovation could completely disrupt space travel. Traveling through space would be cheaper in terms of fuel costs and other expenses. It would take more time for us to travel from here to there, but that is a small price to pay for the advancements made in our technology.
PRNT The 3D Printing ETF
The 3D Printing ETF invests in companies that are developing, producing, and selling 3D printers. These companies approach the industry with both caution and optimism- they share three common traits: they are innovating rapidly, making technology accessible to a wider audience, and their projects are risky.
Some examples of these types of investments are ExOne (XONE) and Stratasys (SSYS). As technology becomes more affordable, consumers can create their own products at home through 3D printing- this should increase business for the companies involved with 3D printing. The field is still in its infancy but has huge potential moving forward.
IZRL Israel Innovative Technology ETF
The IZRL Israel Innovative Technology ETF invests in Israeli companies. The fund’s focus is on technology companies that specialize in sectors such as pharmaceuticals, defense, software, telecommunications, and semiconductors. One of the unique things about this fund is that it does not invest in retail or commercial companies. These investments are tactical and have a high risk associated with them- they could also be incredible opportunities for investors willing to take the risk.
The easiest way to invest in ARK ETFs is with M1 Finance.
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