MarketWatch: “Why Nasdaq is ‘reasonable alternative’ to Cathie Wood’s ARK Innovation ETF in this stock-market environment, according to DataTrek”

By admin_45 in IN THE NEWS

Excerpt from MarketWatch quoting DataTrek co-founder Jessica Rabe:

... "With Cathie Wood’s flagship ARK Innovation ETF potentially facing more pain in the stock-market slump, the technology-laden Nasdaq Composite may provide investors more “insulation” in today’s “challenging macroeconomic environment,” according to DataTrek Research. 

“If you want exposure to disruptive tech, the Nasdaq is a reasonable alternative to ARKK in the current investment environment,” said Jessica Rabe, co-founder of DataTrek, in an emailed note Wednesday. “We suggest the Nasdaq Comp or 100 given that they both include some spicier tech names but own US large cap tech in size.”

The ARK Innovation ETF, which trades under the ticker ARKK, is an actively managed fund with a concentrated portfolio that includes “large weights in many speculative tech names,” such as Roku Inc. ROKU, +2.63%, UiPath Inc. PATH, +1.70% and Block Inc SQ, +5.03%, according to DataTrek. The fund ARKK, +1.32% has plunged 62.3% this year through Tuesday, the day it hit a 52-week, FactSet data show.

“ARKK will most likely trough at lower levels on a percentage basis and rebound more slowly than the Nasdaq in the early 2000s because it does not own as many large, seasoned companies,” said Rabe, referring to the period of the dot-com bubble bursting"...

Full article here on MarketWatch.