Investors have experienced bull market returns in 2017. Throughout the fourth quarter, new daily highs from multiple indexes were common, with the broad market S&P 500 Index posting a year-to-date return of 19.85% through Dec. 22, 2017. With stabilizing economic growth and improving corporate earnings, the trend appears likely to continue into 2018.
This is good news for equity investors and specifically those investors interested in growth stocks. While stock picking among top growth stocks can be tedious and challenging, this category has proven to be an important wealth-building allocation across most diversified portfolios.
What many growth stock investors may be glad to see in 2018 is that the emergence of innovative new technologies in what many experts are calling the “new sharing economy” could make near-term stock picking a little easier. ARK Invest has developed a series of exchange-traded funds (ETFs) focused on this area of the market that has topped nearly all other ETFs in 2017. Developing various ETFs focused on growth stocks, ARK Invest has diversified ETFs that provide exposure to some of the most innovative companies in the growth market for 2018 and beyond.
Their series of funds provides for the top three growth ETFs, and they are investing in cloud computing, e-commerce and artificial intelligence trends that are just starting to take hold in today’s “sharing economy.” The ARK funds represent the ETF market’s top active management strategies. For investors, they offer not only aggressive-growth exposure but diversified thematic investment as well. So if you are looking for new places to invest over a three- to five-year time horizon, consider adding these three growth ETFs to your portfolio.
Note: All figures are as of Dec. 22, 2017. Funds were chosen based on year-to-date (YTD) performance returns from the ETF growth equity category. These funds do not use leveraged strategies to achieve investment returns.
Assets under Management: $253.8 million
Average Volume: 114,308
YTD Return: 87.85%
ARKW is ARK Invest’s internet-focused fund. The fund is actively managed. It seeks to invest in digital internet companies providing a wide range of consumer and institutional client solutions. The fund invests in the following sectors: cloud computing, cybersecurity, big data, machine learning, e-commerce, digital media, blockchain, internet finance, the internet of things, mobile and social. Top holdings in the fund include Bitcoin Investment Trust, Amazon.com and Twitter. The fund has a YTD return of 87.85% for the period ending Dec. 22.
Assets under Management: $391.2 million
Average Volume: 195,845
YTD Return: 88.28%
ARKK is an is actively managed ETF. It invests in companies offering innovative new products and services across a range of sectors. Innovations include genomic sequencing, cloud computing technology solutions, e-commerce, internet credit services, blockchain, autonomous vehicles, robotics, 3D printing and more.
ARKK combines the research efforts of three of the firm’s innovative sector funds (Genomic Revolution Multi-Sector ETF, ARKQ and ARKW) to offer a comprehensively diversified innovation fund for growth investors.
Top holdings in the fund include Bitcoin Investment Trust, Tesla and Twitter. The fund has a YTD return through Dec. 22 of 88.28%.
Assets under Management: $120.1 million
Average Volume: 41,378
YTD Return: 53.67%
The ARK Industrial Innovation ETF ARKQ invests in companies engaged in industrial innovation across multiple sectors. Sector investments include autonomous vehicles, 3D printing, robotics and energy storage.
Top holdings in the fund include Tesla, Stratasys, Amazon.com, Baidu and Bitcoin Investment Trust. As of Dec. 22, the fund had a YTD return of 53.67%.