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Top Performing Active ETFs & Tesla's Best-Case Scenario

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  • (1:00) - ARK Invest’s Outperformance: What Is Their Secret Sauce?
  • (6:10) - The Research Process Of ARK Invest
  • (10:20) - Genomic Revolution Multi-Sector ETF: ARKG
  • (14:00) - Next Generation Internet ETF: ARKW
  • (18:45) - 2017 ETF Of The Year: ARK Innovation ETF (ARKK)
  • (23:15) - How Can These Strategies Fit Into Your Portfolio? 
  • (28:30) - ARK Invest's Open Letter To Tesla
  • (34:50) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight Podcast, I talked with Tom Staudt, Chief Operating Officer at ARK Investment Management. ARK was named “Most Innovative ETF Issuer of the Year 2017” and is well known for its lineup of top performing actively managed ETFs.

Most actively managed ETFs have underperformed the broader markets over the past few years and that’s why investors have been pouring money into cheap, passive products.

ARK ETFs have managed to stand out with their sustained outperformance. In fact, if we look at the performance of all US listed, unlevered ETFs over the past three years, three out of top 15 ETFs are managed by ARK.

ARK focuses on disruptive innovation that is changing the way the world works. Tom walked us through their research process to identify investment opportunities and package them into ETFs.

We then discussed their best performing ETF of 2018—the ARK Genomic Revolution Multi-Sector ETF (ARKG - Free Report) —that has gained about 37% this year. It focuses on some of the high growth areas in biotech such as CRISPR, bioinformatics, molecular diagnostics and stem cells.

We also talked about the ARK Web x.0 ETF (ARKW - Free Report) , which has risen about 157% over the past three years. It focuses on “next generation internet” including artificial intelligence, big data, cloud computing, cybersecurity, and blockchain technologies.

They started investing in bitcoin via the Bitcoin Investment Trust (GBTC - Free Report) at the end of 2015 and benefitted from digital currency’s meteoric rise through the end of 2017.

The ARK Innovation ETF (ARKK - Free Report) combines the best of their investment strategies. It was named “ETF Of the Year” for 2017. The ETF has gained about 28% this year and 133% over the past three years.

Investors have noticed the superior performance of ARK ETFs and have been pouring money into these ETFs. We discussed how ARK’s disruptive strategies should be used in a portfolio.  

ARK’s open letter to Elon Musk against taking Tesla (TSLA - Free Report) private made headlines recently. Musk had responded to the letter.  According to ARK’s models, “Tesla should be valued somewhere between $700 and $4,000 per share in five years.”

Tesla is the top holding in ARKW and AKKK. Please check out the podcast for additional information on ARK’s forecast for Tesla.

To learn more about ARK ETFs, please visit https://ark-funds.com.

Please make sure to tune in for our next podcast. If you have any comments or question, please email podcast@zacks.com

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