December 28, 2020
It’s now the largest actively managed exchange traded of any variety, and its one of the best-performing ETFs this year, active or passive. The
ARKK is often highlighted for being an early ETF advocate for Tesla (NASDAQ: TSLA). The case for Tesla upside remains strong because of continuous advancements in EV.
“Electric vehicles may cost about the same as their gas-guzzling brethren in just three or four years and only get cheaper from there,” reports David Baker for
ARKK Is Not Slowing Down
Among ETFs that aren’t dedicated sector funds, ARKK has the positioning to capitalize on this evolving industry.
JP Morgan Creates A YOLO ETF That Tracks An ARK Invest ETF With Leverage
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JPMorgan Offers You Only Live Once Trade to Bet on Ark ETFs
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JPMorgan rolls out a supercharged tech trade designed to amplify gains in stocks like Tesla, report says
JPMorgan rolls out a supercharged tech trade designed to amplify gains in stocks like Tesla, report says
Ben WinckDec 15, 2020, 01:31 IST
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JPMorgan is selling an investment product that allows clients to augment their bets on high-flying tech stocks.
The notes track three exchange-traded funds from
Ark Investment Management leveraged 1.5 times over a six-year period, Bloomberg reported on Monday.
The underlying ETFs have all rallied at least 150% in 2020. Two reaped the benefits of Tesla s 660% year-to-date surge.
The product s rollout comes as investors shift out of tech stocks and into cyclical sectors amid hopes that a vaccine will fuel a recovery.
Tesla Just One Cog in ARKK’s Ascent
As has been widely documented (NASDAQ: TSLA) is ARKK’s top holding and the position is providing an obvious tailwind for the ETF this year. Shares of the electric vehicle maker will soon join the S&P 500.
“ARKK’s rally ranks it as one of the top 10 performing U.S. ETFs this year in a universe of over 2,400 funds. It’s attracted roughly $7.6 billion worth of inflows so far in 2020, the bulk of which came in the second-half of this year as the tech sector took off,” according to
Bloomberg.
One of the key components in evaluating growth strategies is execution, which ARKK offers investors. The fund has the benefit of active management, meaning it can target areas often overlooked by traditional passive rivals. Adding to the ARKK thesis is that many innovative companies may actually be undervalued, not overvalued.