The ARKG ETF: Genomics Exposure with a Twist
The
ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) is obviously positioned as a genomics fund, but as an actively managed exchange traded fund, it can venture into other growth areas in the healthcare sector.
That includes telemedicine, as highlighted by the fund’s significant exposure to Teledoc (NYSE: TDOC).
ARKG includes companies that merge healthcare with technology to capitalize on the revolution in genomic sequencing. These companies try to better understand how biological information is collected, processed, and applied by reducing guesswork and enhancing precision, restructuring health care, agriculture, and pharmaceuticals in the process.
Is Chinese Healthcare the Miracle KURE for Your Portfolio? April 5, 2021
In the United States, healthcare is a dynamic sector home to defensive value stocks, disruptive growth names, and plenty of in-between.
China offers a comparable level of healthcare dynamism, which investors can access with exchange traded funds such as the
KURE invests in a variety of publicly traded shares of Chinese issuers, including A-Shares, B-Shares, H-Shares, P-Chips, and Red Chips – the portfolio essentially includes companies listed on mainland China, Hong Kong, and the U.S. Furthermore, the Chinese healthcare companies must be classified under the Global Industry Classification Standard. That index may also include small-, mid- and large-cap companies.
Few ETFs debut to as much fanfare as did the recently launched
The fund tracks the BUZZ NextGen AI US Sentiment Leaders Index. It employs leading-edge analytics to harness the collective conviction of millions of investors. The Index tracks the performance of the 75 large cap U.S. stocks that exhibit the highest degree of positive investor sentiment and bullish perception based on content aggregated from online sources, including social media, news articles, blog posts, and other alternative datasets.
Using social sentiment to glean insight about potential movements by individual stocks has been around almost as long as social media itself. Investors that are new to social sentiment and its applications may be surprised to learn that many of the early adopters of social sentiment in the financial markets were high-level, sophisticated market participants, including hedge funds and institutional investors.
ARKG includes companies that merge healthcare with technology to capitalize on the revolution in genomic sequencing. These companies try to better understand how biological information is collected, processed, and applied by reducing guesswork and enhancing precision, restructuring health care, agriculture, and pharmaceuticals in the process.
As ARK research points out, yet another emerging opportunity within the genomics space is synthetic biology (SynBio).
“Synthetic biology (SynBio) is a rapidly growing field of science that engineers organisms and biomolecules with novel properties not found in nature,” according to the issuer. “Central to SynBio is the ability to assemble DNA from its four canonical bases (A, T, G, and C), creating oligonucleotides or ‘oligos’, for many healthcare applications. Diagnosticians use synthetic oligos, for example, to calibrate and verify the performance of both PCR and sequencing-based tests for COVID-19.”
It's not a dedicated electric vehicle (EV) ETF, but with significant exposure to Tesla, the ARK Innovation ETF (NYSEArca: ARKK) is highly levered to the EV trade.