Invest on the Cutting Edge with This Biotech Fund

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

Medicine has come a long way in the last few decades, and that pace shows little sign of slowing. 

Advertisement.

The cutting edge of medicine is leaping and bounding into the future, and there is a potential investment theme here that could be wildly profitable. So, how can individual investors like you and me profit from this trend? Well, one way is ARK Genomic Revolution ETF (ARKG).

This exchange-traded fund (ETF) invests in companies related to a range of exciting technologies in the biotech and medical areas. As the name implies, the focus is on scientific developments in the genomics field for this fund. These technologies are expected to enhance the quality of human life, such as by allowing for gene editing to prevent certain genetic diseases.

Some of the technologies involved here are: CRISPR, targeted therapeutics, bioinformatics, molecular diagnostics, stem cells and agricultural biology. Each of these developing technologies has the potential to bring revolutionary change to their respective fields. The fund can hold both domestic and foreign investments across multiple sectors so long as the companies held are relevant to these exciting themes.

Advertisement.

This fund’s recent performance has been a bit disappointing, which may make for a strong entry point. For the last year, the fund is up 54%, still considerably better than the S&P; however, much of those gains came last year, and so ARKG’s year-to-date performance is an underwhelming -10%. The expense ratio for this fund is 0.75%, which is somewhat high, but it makes sense that an actively managed fund might charge more of a premium. There is no dividend.

Exclusive  ETF Talk: Spotlight on Spot ARK 21Shares Bitcoin ETF

Chart courtesy of www.StockCharts.com

The top holdings for ARKG include Teladoc Health Inc. (TDOC), 6.82%; Exact Sciences Corp. (EXAS), 4.94%; Regeneron Pharmaceuticals (REGN), 4.49%; Pacific Biosciences Corp. (PACB), 4.37%; and Caredx Inc. (CDNA), 4.09%. Roughly 42.32% of the fund’s net assets of just under $10 billion are invested in the top 10 holdings, which makes it relatively concentrated for an ETF. Currently, there is a total of 60 holdings, with a few of those positions being extremely small. The fund is actively managed, and so the holdings don’t necessarily correspond to a market cap weighting strategy.

Advertisement.

If investing in cutting-edge biotech strikes you as an interesting strategy, ARK Genomic Revolution ETF (ARKG) may be one fund you could consider for your portfolio.

share on:

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE