Investing in Exponential Growth Curves - A Look at ARK ETFs
If you read my last article, "Thoughts on Technology, Automation & AI - Where we are Now & Where we are Heading", you probably felt I was a tad pessimistic about the future of this exponential growth curve of technology that we are going on. However, I wanted to be realistic as well, by showing you where we are today and where we are heading based on the growth we have seen in the last two decades which outpaces the growth that has taken place in the last two centuries.
Having this view of the very near future is not all grim however, and allows me perspective to see great investment opportunities as well in these emerging trends.
I believe investing in biotech, AI, robotics, IOT be it through related stocks or ETFs and gaining portfolio exposure in these growing developments is a must. And Ark Investment Management, led by CIO Catherine D. Wood (An early investor in Bitcoin) has an interesting offering of such Disruptive Innovation ETFs which is why I believe they will perform very well.
Active ETFs:
ARKG – Genomic Revolution Multi-Sector ETF
- Exposure in Biotech (Gene Therapy, Bioinformatics, Molecular Diagnostics, Stem Cells)
- HUMAN GENOMIC SEQUENCING ALONE IS PROJECTED TO GROW AT A 200% ANNUAL GROWTH RATE OVER THE NEXT FIVE YEARS. – Source: ARK Investment Management LLC | Research 2017
- Exposure in in IOT, Social Platforms, Mobile, Digital Media, E-Commerce, Blockchain, E-Commerce, Cloud Computing & Cyber Security
- THE AMOUNT OF ANALYZED DATA IS SET TO AND OBJECTIVE GROW 14x OVER THE NEXT FIVE YEARS AT A 70% ANNUAL GROWTH RATE. – Source: ARK Investment Management LLC Research 2015
ARKQ – Industrial Innovation ETF
- Exposure in Autonomous Vehicles, Robotics, 3D Printing, Energy Storage, Alternative Energy, Space Exploration, Innovative Materials
- ARK BELIEVES THE MARKET CAP FOR MOBILITY AS A SERVICE WILL BE WORTH 3X THE VALUE OF THE AUTO INDUSTRY IN 5 YEARS. Source: ARK Investment Management LLC, 2017
On the Landing Page of Ark, they have an interesting chart which shows the rapid pace of innovation we are going through today vs. time, shown below:
“Disruptive innovation is not priced correctly by traditional investment strategies because people don’t understand how big the ultimate opportunities are going to be. They aren’t sizing the opportunity and they aren’t analyzing the disruption.” - Catherine D. Wood, CIO of ARK Investment Management LLC
Let me know what you think of Investing in Breakthrough Technologies of Today & Tomorrow and ARK Funds in the comments below!