Surging Treasury yields are weighing on growth fare, including Tesla and the
ARK Innovation ETF (NYSEArca: ARKK), but this recent run of weakness could give way to opportunity with the electric vehicle maker and the famed exchange traded fund.
“Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies (‘Genomic Revolution’), industrial innovation in energy, automation, and manufacturing (‘Industrial Innovation’), the increased use of shared technology, infrastructure and services (‘Next Generation Internet’), and technologies that make financial services more efficient (‘Fintech Innovation’),” according to ARK Invest.
February 24, 2021
Shares of Tesla are retreating, dragging other electric vehicle stocks along for the ride, but near-term volatility doesn’t dent the long-term electric vehicle thesis. Nor does it diminish the allure of exchange traded funds like the
SMOG seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Ardour Global IndexSM (Extra Liquid). Tesla and Nio represent large percentages of the ETF’s holdings. With an emphasis on lowering emissions via their electrical vehicles, Tesla and Nio have been producing stellar gains the past year.
“The transition from conventional cars to electric vehicles (EVs) is accelerating, directly impacting auto makers and auto parts providers,” according to VanEck research. “This is creating investment opportunities in battery cell makers, charging infrastructure and charge stations, optimization software, as well as semiconductors, cameras, etc. We strongly believe this accelera