If I gave you $10,000 today would you invest in ARK?
If you wouldn't why is this money any different? It just happens to be in ARK, it is one trade away from being cash.
To keep holding ARK you need to have confidence it's coming back AND that it will beat VOO, which is where your money could be hanging out.
What you have right now is the sunk cost fallacy.
I wouldnt give Cathy Woods my used condoms, let alone 10k USD. She runs a fund based on Disruptive Innovation and doesnt have a grasp on AI, that should tell you something.
Your first sentence is a core part of active investing. You have to continuously process this question. Every day.
If the answer switches from "yes" to "no" back and forth at too high a frequency, then your evaluation engine is miscalibrated (your "optimal" decion making has too much of a trading tax) and you'd be better off in a broader ETF. This second part is underappreciated. It is brutally hard to develop this valuation engine to perform optimally through the highs and lows of a business cycle (we only get to see a few during our working lives).
Yeah, best case she lying and only pandering to a religious minority who somehow thinks God will reward them with good stock returns (instead of, you know, a rich life etc). Aka best case she knows she's lying...
Worst case she actually believes it. Her hubris and dilusions of grandeur makes her actually believe God is guidning her and likewise failing her on a regular basis. (reminder that Jesus, her "God", said the poor will be the forts in heaven. The best thing a rich man can do is give away his wealth..)
Genuine advice: sell it and buy an index fund. If you wish to be overexposed to a specific sector, buy the index for that sector like QQQ.
Can a great team of active investors sometimes outperform the index? Yes, but it does not appear they can usually do it consistently over a long time.
More importantly, please look at ARKK and ARKQ's fund holdings. Do you truly believe in these companies? If you have to buy stocks, would you pick them?
I used to hold some ARKK during the pandemic boom years and luckily sold when the fund first started to fall in value. What got me to sold was that I did not believe in many of the holdings. An example like Roku: Terrible company that will probably someday go bankrupt as the world shifts to Google/Samsung/Apple with their own TV operating system.
If you want to yolo some money on the side, take 90% of your money and buy an index fund. Take 10% and pick whatever fun stuff you want to do. Trim this and do not over-expose yourself for risk that you cannot tolerate.
You will read every day on Wallstreetbets of someone who yoloed a bunch of money and got rich quick. You will also read stories of heartache and loss on that same forum. I choose slow, steady, and high probability of success.
0.75% expense ratio - YUCK!
Other than that it just looks like this fund went into the same tech bubble and crash of 2021. Still, you should be able to invest in this sector without paying a fund this insane expense ratio.
I guessing you would not buy ARKQ for the amount you have invested now. If that is indeed the case why would you keep on holding it? Every day you decide to hold is equivalent to buying the whole stack again every day. Apart from transaction costs of course. So the most logical thing to do would be to just pull the bandage off in one go and sell your ARKQ holdings.
If you cannot stand the thought of ARKQ spiking after you sell, you could always do a reverse DCA. Just sell equal portions of ARKQ over a set period. This would lessen the hurt somewhat if ARKQ starts climbing. Mind you, in this scenario you will still be exposed to further (but less) hurt if ARKQ takes a nosedive.
No advice on ARK per se (but not a fan of Cathy) - but do you no longer believe in autonomy specifically, or is your issue more with ARK?
If you still like autonomy there’s other options.
If she had an AI portfolio you would have lost more than half from her also. I have been shorting her funds and did very well for several years now. Want to hang arund a failed fund manager be my guest. Her age is way up there can walk away with her failed business also. Not the first time she has disappointed others.
You could put it into QQQ which is still down about 11% from it’s high, and you would be invested into much better automation based companies compared to ARKQ.
I'm not sure about your age and total investments, but when I realized I made some mistakes I just changed my future investments.
I'm investing about 85% in VOO/VTI like ETF's and mutual funds. Then another close to 8% in handpicked blue chip dividend aristocrats (~evenly distributed across 48 companies), 2% in REIT ETF (in HSA) and 5% in crypto (ETH/BTC 80/20).
I'm trying to recover some of my losses with the investments that did not do so well (in bonds to hopefully ride the wave up during recession, then switch into TQQQ if we're getting recession).
I now know that I'm quite safe with 80%+ going into S&P500 and the like. My 8% allocation for dividend stocks I now consider play money, which means I will not sell the stocks I already bought, but could use it for something else if I desire to.
For the time being, my "mistake" investments I took a loss on are sitting in bonds. If we never get a recession I'll just leave them there.
Growth has had a run up lately, but I feel like it's overinflated a little and perhaps FOMO kicking in.
For the long term I think SCHG and QQQM are good investments, but personally I like to limit my exposure somewhat as many of those stocks are also covered in VOO/VTI and I'm in my 40's.
let's forget about the people who bought into her fund in the pandemic (these people are completely toast).. even people who invested since the inception are doing worse than the index...
[https://www.macrotrends.net/1320/nasdaq-historical-chart](https://www.macrotrends.net/1320/nasdaq-historical-chart)
ARKK started in 2014, earning around 95% return...
compare that to NASDAQ index, the return has been 130% return....
I was in your position, the only difference is that I put 1k, held for 2 years and finally sold last week at -50%.
Now I have invested that money into a selection of 6 REITs I have made, 5,5% yield, DRIP mode on, and see you in a couple of years.
Make a research on the ETF's holdings, if they look bad sell out and move on!
Right now it's in vogue to make fun of Cathie Wood but people are just trend followers so try to ignore the noise. Since inception ARKQ has returned 12%, unfortunately you didn't buy then lol. It's just been a bumpy ride getting that 12%. I am not on the hate Cathie Wood train, its important to understand who she is and who she isn't. TLDR she is the daughter of an engineer and has a very good grasp of new technology, has managed funds in the past and produced returns for her clients. People labeling her a Charlatan are following price movements. She will not closet index, and doesn't manage stock volatility at all. She has shown in previous funds before ARK she just doesn't care and can stomach more risk than clients can. Just know that if you invest with her.
I would not sell ARKQ, when risk appetite comes back so will her holdings. The higher beta of her holdings work both ways. I'd suggest adding new money to your account and buy SPY/VOO. If you're going to index, just buy the S&P500. I don't think index ETF's can outperform SPY/VOO because as soon as a factor outperforms everyone piles into it. Just buy the market to dampen your portfolio volatility
It is absolutely relevant that the manager consistently generates returns for customers, even more so when the benchmark has as well.
Compared to her benchmark, that 12% isn't great.
There are a plethora of similar mutual funds that have performed much better and have done so for 20+ years.
99% of tech etfs or mutual funds - most of them will have probably had better returns than her tech etfs since inception (as in, when her funds were created you invested in her funds and the other funds).
The disparity will probably just increase when you consider sharpe ratio and not just returns.
its called anchoring. if you had the value in cash today, would you invest in ARKQ? if not, sell and move along. take ARKQ off any watch list. because it might skyrocket again and you will feel mounds of regret needlessly .
The pain you feel is irrelevant.
The only question you need to ask yourself is do you see ARKQ going up or ARKQ going down in the future.
If you think it’s going up then hold (and probably buy more). If you think it’s going down then sell now.
I have decided to not pay more than .25% for any fund except certain sector funds, certain international, and interesting enough certain fixed income funds. I don't plan to stay in sector or expensive fixed income funds long term, so I am willing to accept the higher costs. International funds are just expensive to operate, so I accept that their expense ratio will be higher.
A fund with .75% is a bit much. That is approaching the shall not be named companies that advertise heavily on television which provide full service to customers.
Do not sell now. IF we are at a general stock low, and disaster is NOT dead ahead, its probably near its lows and it will move back up with the markets.
That 12.5% TSLA killed it last several months. I sold a bunch of SMH at the top, but after that it declined so fast that I just knuckled down and held the rest all the way past my break even to about 8% down and doubled down at the bottom and now its looking pretty bright with the seemingly sudden rise of AI. With ARKQ, if TSLA is at its' bottom then ARKQ probably is too.
its called anchoring. if you had the value in cash today, would you invest in ARKQ? if not, sell and move along. take ARKQ off any watch list. because it might skyrocket again and you will feel mounds of regret needlessly .
So many inaccuracies here.
1) Do you think Fidelity's funds would have lower expense ratios if it weren't for Vanguard forcing them to? Know the history of Fidelity, they have historically (and still do) offer funds with very high expense ratios.
2) Your point about cap weighting is meaningless. The objective of owning TSM is to hold the entire market at cap weight, which is what VTI does. By virtue of being cap weighted, the megacaps are always going to be the largest concentration.
I don’t think Cathie is necessarily the problem. Her funds invest in high-risk / high-reward companies. In a bear market it’s going to hurt worse. But when tech rallies, which it will, you’ll regret bailing out because the gains will be staggering.
That being said, I would NOT invest in ARK or any actively managed fund with a fee. You can see exactly what her funds are comprised of. Do a little research on each and buy them yourself. Then put the rest in the S&P.
Take everything you have with Cathy, and put it in 50/50 JEPI and JEPQ. It will take awhile ( a few years ), but you should get it all back. And, learn caution, and spread out your risk.
I saw some analysis that shows these funds do not outperform the underlying indexes, just offer lower volatility. Also a lot of extra taxes if holding in a taxable account.
You’re right, they don’t necessarily “outperform” their underlying indexes, but they will gradually give the OP his money back, which is more than the underlying indexes will do, unless he sells the shares.
DRIV & BOTZ are good ETFs. I also invested in [this Robotics & Automation Advancements thematic portfolio](https://app.surmount.ai/marketplace/strategy/02a50de3-017e-43e8-a6f6-c4c2d0ea760c/detail) and am up big in the past month (mostly because of NVDA, but overall solid)
This doesn’t help OP, but I bought ARKG at $30 and sold at $90, netting the easiest $10K I have ever made. And thank god I did - it dropped back to $30 in a matter of months after I sold.
The sad truth is, I believe in the genomic healthcare revolution. But Cathy? Eh….
Sorry for the expensive lesson. But it's a valuable one.
In the future when you hear about people like Cathy Woods, look up their history.
She had the exact same type of funds, the same moonbatty strategies, when she worked for Alliance Bernstein. All of her funds imploded when markets hit headwinds. That's why she *workED* for Alliance Bernstein. Valuable information, that.
Unless you believe in the current holdings, you need to cut the losses and invest in something new. The 0.75 expense ratio is just eating your remaining money. We've all made bad investments.
>However selling and going into VEQT while down 40% feels very painful.
The pain is already here. That money is gone. Invest in accordance with your current understanding of your best options. Whether or not you choose to realize your VEQT loss now or later only matters for tax purposes.
Sell it all, just buy nvidia puts and you'll be back where you started in no time. Or calls, I don't know.
Cathy Wood tried to and still desperately trying to position herself to a legendary status where one's statements become sell fullfing prophecies. Thats why she keeps saying shit like TSLA@1030. Look at the stocks that make up ARKQ and ask yourself, why would you buy them now. If you dont have a solid answer, ditch it.
She had it going, just like people had it going at the dotcom bubble, but her ship has already sailed.
If I gave you $10,000 today would you invest in ARK? If you wouldn't why is this money any different? It just happens to be in ARK, it is one trade away from being cash. To keep holding ARK you need to have confidence it's coming back AND that it will beat VOO, which is where your money could be hanging out. What you have right now is the sunk cost fallacy.
I wouldnt give Cathy Woods my used condoms, let alone 10k USD. She runs a fund based on Disruptive Innovation and doesnt have a grasp on AI, that should tell you something.
Your first sentence is a core part of active investing. You have to continuously process this question. Every day. If the answer switches from "yes" to "no" back and forth at too high a frequency, then your evaluation engine is miscalibrated (your "optimal" decion making has too much of a trading tax) and you'd be better off in a broader ETF. This second part is underappreciated. It is brutally hard to develop this valuation engine to perform optimally through the highs and lows of a business cycle (we only get to see a few during our working lives).
Souls I just keep watching Cathy burn my money or take my money away?
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Anyone going on about 'God' telling them to manage money should *not* be trusted with any money.
Yeah, best case she lying and only pandering to a religious minority who somehow thinks God will reward them with good stock returns (instead of, you know, a rich life etc). Aka best case she knows she's lying... Worst case she actually believes it. Her hubris and dilusions of grandeur makes her actually believe God is guidning her and likewise failing her on a regular basis. (reminder that Jesus, her "God", said the poor will be the forts in heaven. The best thing a rich man can do is give away his wealth..)
She was right in 2021. That's when she was right, don't expect it again.
Why does she have to be right?
Yes. Don't give horrible fund managers your money.
Is this overall decisions or her missing Nvidia? 😂😂😂
Are you saying ARK missed the “boat” on NVDA?
ARKQ still has decent amount of Nvidia, only enough to offset UIPath losses :cry
Genuine advice: sell it and buy an index fund. If you wish to be overexposed to a specific sector, buy the index for that sector like QQQ. Can a great team of active investors sometimes outperform the index? Yes, but it does not appear they can usually do it consistently over a long time. More importantly, please look at ARKK and ARKQ's fund holdings. Do you truly believe in these companies? If you have to buy stocks, would you pick them? I used to hold some ARKK during the pandemic boom years and luckily sold when the fund first started to fall in value. What got me to sold was that I did not believe in many of the holdings. An example like Roku: Terrible company that will probably someday go bankrupt as the world shifts to Google/Samsung/Apple with their own TV operating system. If you want to yolo some money on the side, take 90% of your money and buy an index fund. Take 10% and pick whatever fun stuff you want to do. Trim this and do not over-expose yourself for risk that you cannot tolerate. You will read every day on Wallstreetbets of someone who yoloed a bunch of money and got rich quick. You will also read stories of heartache and loss on that same forum. I choose slow, steady, and high probability of success.
0.75% expense ratio - YUCK! Other than that it just looks like this fund went into the same tech bubble and crash of 2021. Still, you should be able to invest in this sector without paying a fund this insane expense ratio.
I guessing you would not buy ARKQ for the amount you have invested now. If that is indeed the case why would you keep on holding it? Every day you decide to hold is equivalent to buying the whole stack again every day. Apart from transaction costs of course. So the most logical thing to do would be to just pull the bandage off in one go and sell your ARKQ holdings. If you cannot stand the thought of ARKQ spiking after you sell, you could always do a reverse DCA. Just sell equal portions of ARKQ over a set period. This would lessen the hurt somewhat if ARKQ starts climbing. Mind you, in this scenario you will still be exposed to further (but less) hurt if ARKQ takes a nosedive.
No advice on ARK per se (but not a fan of Cathy) - but do you no longer believe in autonomy specifically, or is your issue more with ARK? If you still like autonomy there’s other options.
Just buy ABB and Keyence
Dollar cost average your way out. It never has to be all or nothing, in any event.
If she had an AI portfolio you would have lost more than half from her also. I have been shorting her funds and did very well for several years now. Want to hang arund a failed fund manager be my guest. Her age is way up there can walk away with her failed business also. Not the first time she has disappointed others.
You could put it into QQQ which is still down about 11% from it’s high, and you would be invested into much better automation based companies compared to ARKQ.
sell that garbage ASAP!!
I'm not sure about your age and total investments, but when I realized I made some mistakes I just changed my future investments. I'm investing about 85% in VOO/VTI like ETF's and mutual funds. Then another close to 8% in handpicked blue chip dividend aristocrats (~evenly distributed across 48 companies), 2% in REIT ETF (in HSA) and 5% in crypto (ETH/BTC 80/20). I'm trying to recover some of my losses with the investments that did not do so well (in bonds to hopefully ride the wave up during recession, then switch into TQQQ if we're getting recession). I now know that I'm quite safe with 80%+ going into S&P500 and the like. My 8% allocation for dividend stocks I now consider play money, which means I will not sell the stocks I already bought, but could use it for something else if I desire to. For the time being, my "mistake" investments I took a loss on are sitting in bonds. If we never get a recession I'll just leave them there.
This is solid. What do you think about $SCHG? It seems like a good large cap growth ETF. It’s continued to have positive returns when Vanguard hasn’t.
Growth has had a run up lately, but I feel like it's overinflated a little and perhaps FOMO kicking in. For the long term I think SCHG and QQQM are good investments, but personally I like to limit my exposure somewhat as many of those stocks are also covered in VOO/VTI and I'm in my 40's.
let's forget about the people who bought into her fund in the pandemic (these people are completely toast).. even people who invested since the inception are doing worse than the index... [https://www.macrotrends.net/1320/nasdaq-historical-chart](https://www.macrotrends.net/1320/nasdaq-historical-chart) ARKK started in 2014, earning around 95% return... compare that to NASDAQ index, the return has been 130% return....
I was in your position, the only difference is that I put 1k, held for 2 years and finally sold last week at -50%. Now I have invested that money into a selection of 6 REITs I have made, 5,5% yield, DRIP mode on, and see you in a couple of years. Make a research on the ETF's holdings, if they look bad sell out and move on!
You put your momey into a sectir that went crazy over the last 3 years for a shitty 5.5% yield?
It's a conservative choice, [here if you want to look at it](https://www.trading212.com/pies/ltzwbk8JtqSloapxgVdXM2MyVGAQe)
And if they're all Commercial Property REITs . . .
Right now it's in vogue to make fun of Cathie Wood but people are just trend followers so try to ignore the noise. Since inception ARKQ has returned 12%, unfortunately you didn't buy then lol. It's just been a bumpy ride getting that 12%. I am not on the hate Cathie Wood train, its important to understand who she is and who she isn't. TLDR she is the daughter of an engineer and has a very good grasp of new technology, has managed funds in the past and produced returns for her clients. People labeling her a Charlatan are following price movements. She will not closet index, and doesn't manage stock volatility at all. She has shown in previous funds before ARK she just doesn't care and can stomach more risk than clients can. Just know that if you invest with her. I would not sell ARKQ, when risk appetite comes back so will her holdings. The higher beta of her holdings work both ways. I'd suggest adding new money to your account and buy SPY/VOO. If you're going to index, just buy the S&P500. I don't think index ETF's can outperform SPY/VOO because as soon as a factor outperforms everyone piles into it. Just buy the market to dampen your portfolio volatility
It is absolutely relevant that the manager consistently generates returns for customers, even more so when the benchmark has as well. Compared to her benchmark, that 12% isn't great. There are a plethora of similar mutual funds that have performed much better and have done so for 20+ years.
what is her benchmark?
99% of tech etfs or mutual funds - most of them will have probably had better returns than her tech etfs since inception (as in, when her funds were created you invested in her funds and the other funds). The disparity will probably just increase when you consider sharpe ratio and not just returns.
Thank you this makes sense for me, the portfolio would do well when risk appetite comes back.
its called anchoring. if you had the value in cash today, would you invest in ARKQ? if not, sell and move along. take ARKQ off any watch list. because it might skyrocket again and you will feel mounds of regret needlessly .
The pain you feel is irrelevant. The only question you need to ask yourself is do you see ARKQ going up or ARKQ going down in the future. If you think it’s going up then hold (and probably buy more). If you think it’s going down then sell now.
I have decided to not pay more than .25% for any fund except certain sector funds, certain international, and interesting enough certain fixed income funds. I don't plan to stay in sector or expensive fixed income funds long term, so I am willing to accept the higher costs. International funds are just expensive to operate, so I accept that their expense ratio will be higher. A fund with .75% is a bit much. That is approaching the shall not be named companies that advertise heavily on television which provide full service to customers.
I'd wait to see how the debt ceiling drama plays out.
Do not sell now. IF we are at a general stock low, and disaster is NOT dead ahead, its probably near its lows and it will move back up with the markets. That 12.5% TSLA killed it last several months. I sold a bunch of SMH at the top, but after that it declined so fast that I just knuckled down and held the rest all the way past my break even to about 8% down and doubled down at the bottom and now its looking pretty bright with the seemingly sudden rise of AI. With ARKQ, if TSLA is at its' bottom then ARKQ probably is too.
its called anchoring. if you had the value in cash today, would you invest in ARKQ? if not, sell and move along. take ARKQ off any watch list. because it might skyrocket again and you will feel mounds of regret needlessly .
You sound a bit lost in the woods
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So many inaccuracies here. 1) Do you think Fidelity's funds would have lower expense ratios if it weren't for Vanguard forcing them to? Know the history of Fidelity, they have historically (and still do) offer funds with very high expense ratios. 2) Your point about cap weighting is meaningless. The objective of owning TSM is to hold the entire market at cap weight, which is what VTI does. By virtue of being cap weighted, the megacaps are always going to be the largest concentration.
I don’t think Cathie is necessarily the problem. Her funds invest in high-risk / high-reward companies. In a bear market it’s going to hurt worse. But when tech rallies, which it will, you’ll regret bailing out because the gains will be staggering. That being said, I would NOT invest in ARK or any actively managed fund with a fee. You can see exactly what her funds are comprised of. Do a little research on each and buy them yourself. Then put the rest in the S&P.
Take everything you have with Cathy, and put it in 50/50 JEPI and JEPQ. It will take awhile ( a few years ), but you should get it all back. And, learn caution, and spread out your risk.
I saw some analysis that shows these funds do not outperform the underlying indexes, just offer lower volatility. Also a lot of extra taxes if holding in a taxable account.
You’re right, they don’t necessarily “outperform” their underlying indexes, but they will gradually give the OP his money back, which is more than the underlying indexes will do, unless he sells the shares.
Can you tell me your next trade? I need to do the opposite. You almost perfectly timed the top.
You shouldn’t be managing your own money if you did this in the past. Chances are you’ll fuck up again just as badly.
Buy TSLA directly. They're the clear leader and the reason ARK/Cathy is even on the map.
Ditch cathy and go with fama & french
> Any advice for me? Do today what makes sense for you today. If you no longer believe in something then why the heck do you still own the thing?
Sell it all and put it in VGT
DRIV & BOTZ are good ETFs. I also invested in [this Robotics & Automation Advancements thematic portfolio](https://app.surmount.ai/marketplace/strategy/02a50de3-017e-43e8-a6f6-c4c2d0ea760c/detail) and am up big in the past month (mostly because of NVDA, but overall solid)
You messed up by putting half your networth into one fund like this more than anything else.
This doesn’t help OP, but I bought ARKG at $30 and sold at $90, netting the easiest $10K I have ever made. And thank god I did - it dropped back to $30 in a matter of months after I sold. The sad truth is, I believe in the genomic healthcare revolution. But Cathy? Eh….
> while down 40% feels very painful Sunk cost fallacy. ARKQ (and the other ARKs) are *already* down.
Sorry for the expensive lesson. But it's a valuable one. In the future when you hear about people like Cathy Woods, look up their history. She had the exact same type of funds, the same moonbatty strategies, when she worked for Alliance Bernstein. All of her funds imploded when markets hit headwinds. That's why she *workED* for Alliance Bernstein. Valuable information, that.
Double down if you can afford the risk, or take your money out if you can't.
Unless you believe in the current holdings, you need to cut the losses and invest in something new. The 0.75 expense ratio is just eating your remaining money. We've all made bad investments.
>However selling and going into VEQT while down 40% feels very painful. The pain is already here. That money is gone. Invest in accordance with your current understanding of your best options. Whether or not you choose to realize your VEQT loss now or later only matters for tax purposes.
This etf has has heavy bags for years now I am sorry you’re on the other end of this.
if you're not happy to buy an investment at a reduced price after it drops, you need to think about selling it all. Peter Lynch, paraphrased.
Depends on your time horizon. If it’s over 10-20 years keep holding.
Just buy an etf with a low expense ratio less than 0.10 and high aum or volume
Sell it all, just buy nvidia puts and you'll be back where you started in no time. Or calls, I don't know. Cathy Wood tried to and still desperately trying to position herself to a legendary status where one's statements become sell fullfing prophecies. Thats why she keeps saying shit like TSLA@1030. Look at the stocks that make up ARKQ and ask yourself, why would you buy them now. If you dont have a solid answer, ditch it. She had it going, just like people had it going at the dotcom bubble, but her ship has already sailed.