hey guys how's it going it's Andy from Magoo investing happy Tuesday I wanted to talk today
about a group of ETF’s that have been catching my attention recently because they've been talked a
lot on my videos which is pretty unusual when I think about ETF’s I don't normally think of the
younger generation of investors being really interested by them
just because they're not as exciting they're more reliable but they have more long-term goals than
picking individual stocks and with the stocks that have done well in 2020 none of them can be really
described as safe and reliable so today I want to talk about Cathie wood and the ARK ETF’s because
they've been getting a lot of attention as they were some of the top performing ETF’s overall and
they caught my attention because I think they're really interested in what they're focused on
so in today's video I’m going to explain what the ARK ETF’s are I can do a breakdown of what each
of the five ETF’s focus on and then towards the end of the video I’m going to rank them by how I
think they're going to perform in 2021 in addition to which ones I like the most and then I’m going
to talk about who would benefit from investing in these type of stocks because there's definitely a
target demographic and this isn't something that everyone should be investing in so
but before getting started I have to say that I’m not a licensed financial advisor and this is not
financial advice anything here in this video is just me giving my own opinions on the stock
market and you need to do your own research before making any investment decisions also if you've
been enjoying these videos really appreciate it with the like and subscribe button as would help
my channel out a lot so ETF’s have been around for a long time and there are some really great ones
out there they normally follow some sectors or indices and it's usually a way to track
a group of stocks or maybe a commodity like gold and so there's a lot of very interesting ETF’s out
there but the ARK group of ETF’s focuses primarily on innovation which is not something you see
with a lot of other ETF’s they focus on mainly sectors and innovation isn't one of the 11 stock
market sectors but I think it does have a place in a lot of portfolios because innovation are
these stocks that are going to be doing incredibly well in the future and get people really excited
about the products that they're producing so the founder Cathie wood has been around for a long
time in 2001 she was a chief investment officer at alliance Bernstein and then she left to found
ARK investment management and she's been one of the loudest bulls when it comes to a lot of the
innovative areas out there she said back in 2017 that she thought that Bitcoin (BTC) was a bigger
idea than apple but her most famous quote comes with Tesla Stock (TSLA Stock) Ticker $TSLA so
here's what the all-time chart looks like from Tesla Stock (TSLA Stock) with the crazy run that
we've seen in 2020 but looking at the five year chart and before the crazy increase in price in
the last 12 months you can see that the stock was not doing very well she went on tv multiple times
in 2019 talking about how bullish she was on Tesla Stock (TSLA Stock) and she set a price target of
four thousand dollars this is back in 2019 where Tesla Stock (TSLA Stock)'s shares are trading for
around 200 at that point and then in early 2020 she raised her price target up to 6 000. so she
is someone that has been very bullish on some of the most innovative uh investment areas that you
can possibly find so you have Bitcoin (BTC) you have Tesla Stock (TSLA Stock) which have both done
extremely well in 2020 and their tagline for the ARK active ETF’s is invest in the highest growth
potential companies of our generation and with five out of the top 10 ETF’s of 2020 being ARK
ETF’s I think they're pretty good at what they set out to do since 2014 when they were created ARK
ETF’s have returned a range of 19 to 35 percent on an annualized return basis compared to the overall
s p 500 that's returned 11 percent on that basis so they've seen explosive growth in 2020 and they
took in almost seven billion dollars in new assets in December which is the third most out of any of
the ETF groups behind the giants of vanguard and BlackRock so these are a group of ETF’s that have
become extremely popular in 2020 and all of them have doubled so far in 2020 so now I want to talk
about all five of the ARK ETF’s because they are slightly different and I want to talk about what
they focus primarily on just so you have an idea of how they are different from each other so the
largest of their ETF’s on their flagship product as ARKK $ARKK which is our general innovation ETF
so far in 2020 ARKK is up 163 and looking at their top 10 holdings you can see some of my favorites
in there with Roku Stock ($ROKU) Square Stock (SQ Stock) and Teladoc Stock (TDOC Stock) but
the largest of their shares is 10 which is Tesla Stock (TSLA Stock) and we all know how incredible
of a run so far they've had in 2020. next they have the next generation internet ETF with ARKW
they say that ARKW gives exposure to next generation internet including ai big data
cloud computing cyber security and blockchain technology and in 2020 ARKW is up 158%
looking at their holdings you're going to see a lot of similarities with their top 10 including
Tesla Stock (TSLA Stock) Roku Stock ($ROKU) Square Stock (SQ Stock) and Teladoc Stock (TDOC Stock)
but they do have some Bitcoin (BTC) Spotify Stock (SPOT Stock) Facebook Stock (FB Stock) and
Pinterest Stock (PINS Stock) so when you see these stocks they do have a significant amount
of overlap a lot of these ETF’s do include some of their favorites in Tesla Stock (TSLA Stock) when
it makes sense Tesla Stock (TSLA Stock)'s done incredibly well and Tesla Stock (TSLA Stock)
definitely is an innovator so it makes sense there the third in this video is going to be
the autonomous tech and robotics ETF which is ARKQ they give exposure to autonomous vehicles energy
storage robotics automation 3d printing and space exploration and in 2020 this ETF has returned 106
this one has the highest weighting of Tesla Stock (TSLA Stock) stock so far with 12 and there's some
interesting ones with google uh and their parent company alphabet and then jd.com which has been
working with robotics and automated driving which is very interesting and the fourth is going to be
ARKG which is all about genomics it gives exposure to crispr which is a technology to edit genes it
also gives exposure to gene editing therapeutics agriculture biology and healthcare innovation
in 2020 ARKS had a huge year and has been up 209% overall looking at their top 10 holdings besides
crispr therapeutics ticker symbol crsp and Teladoc Stock (TDOC Stock) I know very little about these
stocks but as I talked about later in this video I don't think that that's actually a bad thing
and then the fifth and most recent ETF that they started which was created in early 2019 is ARK
fintech innovation ticker symbol ARKF. ARKF gives exposure to fintech innovations including mobile
payments digital wallets peer-to-peer lending blockchain technology risk transformation and ARKF
and 2020 has returned 106% and looking at their top 10 holdings they have some of my favorites
with Square Stock (SQ Stock) Paypal Stock (PYPL Stock) and Pinterest Stock (PINS Stock) so
it's pretty easy to see that a lot of these ETF’s do have significant overlap
but I do think that's a really good thing it's very easy to be you know take a very
general approach and maybe add like 100 stocks your overall portfolios but the whole reason
that the ARK ETF’s I think have been so successful that they're very specialized and so each of these
ETF’s only have 30 to like 55 holdings which is very small compared to most of the other
ETF’s that you could buy out there and so what this does is they're doing all the research and
they're coming up with only their best stocks to include on these ETF’s and I absolutely love that
so who are these ETF’s targeted at and the answer is not really straightforward I think
these are more focused on the younger generation that wants to be investing in something that's
innovative and exciting but this is also for someone that doesn't have to
worry about picking the individual stocks in an industry that maybe they don't fully understand
and since the single stock you don't have to worry about buying individual shares
of the company or buying partial shares and having to decide what percentage of your portfolio is
split up into these different stocks and based on their track record and the leadership of Cathie
wood I’m going to give all five of these ETF’s a big thumbs up and now I want to rank them on which
ones I like the most because obviously there's five of them they've done very well uh with a
range of 106 percent to 200 percent uh returns in 2020 and so the first one that I’m going to pick
is going to be their flagship ETF with ARKK that's the most diversified out of all their ETF’s and
probably the safest in my opinion but still gives plenty of exposure to innovation and I love that
number two might surprise you a little bit I’m going to go with ARKG with genomics and the whole
reason about this is that they're investing in a sector that I don't fully understand and so
one of the benefits of these ETF’s is that they've done all the research on the companies on their in
their ETF and so based off of their track record I trust them to pick great stocks and so this is an
area that I want to be invested in but I don't fully understand the industry and I don't know
the names that are on these lists so being able to invest into an ETF that has already done the
research is very attractive to me next I’m going to go with ARKF which is the fintech focused ETF
I think we're already seeing the switch digital currencies and more peer-to-peer transactions and
that's very exciting if it had more Bitcoin (BTC) exposure in there I’d be more excited about it
number four I’m going to put ARKW which is the next gen internet no this doesn't mean that I
think it's going to do poorly in 2021 it's just mainly it's like the complete opposite
of my genomics reasoning is that I understand most of these stocks in this industry and so
I feel confident picking my own stocks and so I think this is probably going to be doing pretty
well because the tech and innovation for the internet stuff has been doing very well recently
but I do feel confident enough to pick my own shares that I don't feel the need to buy into
an ETF like this and then finally I’m going to put ARKQ with autonomous tech and robotics
I think it's some very cool technology but it's not something that really excites me and wants me
to put my money behind it so I think it'll probably do fine it just doesn't excite me
like the other four do and so I’d love to hear how you guys would rank these ETF’s and I’d love
to hear if you've ever considered buying the ARK ETF’s and if you had to pick one which one
would you buy in the next video which is going to come out tomorrow I’m going to give my own
kind of ARK portfolio where I’m going to come up with my 10 favorite innovative stocks
put them into a portfolio and then during parts of 2021 I’m going to go back and compare and see if
I can outperform these ETF’s because they have done very well and the whole point of someone
like myself picking individual stocks is that I’m trying to outperform the overall market and
so Cathie wood has created these incredible ARK ETF’s that have returned between like 18 and 35
on an annualized basis so that's very impressive and I want to see if I can beat that so I’m going
to pick my 10 favorite innovative stocks and I’m going to talk about them in tomorrow's video so
thanks for watching this video I appreciate all support and i will see you in the next episode