ARK Invest, led by the pioneering Cathie Wood, is one of today's most influential firms. Its funds are focused on innovation and cutting-edge technology, often leading the pack in next-generation investments.
For instance, ARK was one of the first firms to offer a spot Bitcoin (CRYPTO: BTC) ETF. The offering is in line with Wood's splashy prediction that Bitcoin (CRYPTO: BTC) will top $1M by 2030.
ARK Innovation ETF (NYSE:ARKK) is the firm's flagship fund and the focus of much media attention. When Wood rebalances the fund, which she does constantly, investors take note.
The fund invests in companies that are involved in what it calls "disruptive innovation''; Its two biggest holdings are Tesla (NASDAQ:TSLA) and Coinbase (NASDAQ:COIN). This area of disruptive innovation is highly volatile and means that ARKK is prone to huge swings up and down. When Wood wins, she wins big; when she loses, she loses just as big.
This attracts many investors with a higher risk tolerance and many have been handsomely rewarded for their trust, ARKK was up over 70% in 2023. So far in 2024, however, the story has been a bit different. ARKK is down over 4% while the S&P is up almost 5%, YTD.
AXS
AXS Investments is an award-winning firm offering two products that allow traders to express a bull or bear view of ARKK. Bulls can maximize their return by accessing a leveraged fund, while bears can play the inverse of ARKK.
The AXS 2X Innovation ETF (NASDAQ:TARK) is for the bulls, the innovative fund aims to return twice the daily return of ARKK. The fund has an expense ratio of .95%. TARK was awarded Best ETF Launch at Benzinga's 2023 Fintech Awards.
And for the bears, there is the AXS Short Innovation Daily ETF (NASDAQ:SARK), which aims to return the inverse performance of ARKK. SARK has an expense ratio of .75%.
Options
And for the most risk-tolerant traders around, options contracts are available for SARK and TARK. These can be used to further maximize returns or as a hedge. Options began trading in May of 2022 for TARK and December of 2021 for SARK.
Photo by Simon Hurry on Unsplash.