Read and review commentaries written by Morningstar experts. These observations and insights are specific to Exchange Traded Funds.
Digging Into Ark Innovation's Portfolio
We reveal how the ultra-popular fund's underlying holdings stack up on 11 measures of equity-related risk.
by Amy C. Arnott, CFA | 2021-02-18 05:00:00
Ark Innovation ETF wasn't quite an overnight sensation, but it quickly made up for lost time after a relatively quiet beginning in 2014. Portfolio manager Cathie Wood founded Ark Investment Management after successful stints at Capital Group, Jennison Group, Tupelo Capital Management, and AllianceBernstein. Wood and her colleagues look for companies that lead, enable, or benefit from disruptive innovation, an approach to business strategy popularized by Clayton Christensen and his colleagues in the mid-1990s. (Ark's investment strategy is sort of like disruptive innovation on steroids.)The fund started gaining more attention after its 87% runup in 2017, as well as Wood's bullish call on Tesla in 2018. The fund posted a total return of more than 150% in 2020 and garnered about $10 billion in net inflows for the year, plus an additional $… Full Story
Momentum Often Loses Steam in Practice
Momentum may not work as well in practice as on paper, but well-constructed momentum funds still have a good chance to beat the market.
by Alex Bryan, CFA | 2020-10-20 04:00:00
A version of this article previously appeared in the August issue ofMorningstar ETFInvestor. Click here to download a complimentary copy.Momentum investing is sound in theory but often disappoints in practice. This strategy is based on the tendency for recent performance to persist in the short term. On paper, simple momentum strategies that target stocks with strong returns over the past year seem to work well. But they ignore real-world frictions, like trading costs and taxes, and often look quite different from momentum funds investors can buy.While momentum has continued to work on paper in recent years, most broad large- and mid-cap U.S. momentum funds have underperformed the Russell 1000 Growth Index. (This is an appropriate benchmark because most momentum funds … Full Story
Before investing in an ETF, be sure to carefully consider the fund's objectives, risks, charges, and expenses. For a prospectus containing this and other important information, please click on the Prospectus link. Please read the prospectus carefully before investing.
ETFs: Commentary
Commentary
Read and review commentaries written by Morningstar experts. These observations and insights are specific to Exchange Traded Funds.
Digging Into Ark Innovation's Portfolio
We reveal how the ultra-popular fund's underlying holdings stack up on 11 measures of equity-related risk.
Momentum Often Loses Steam in Practice
Momentum may not work as well in practice as on paper, but well-constructed momentum funds still have a good chance to beat the market.
Digging Into Ark Innovation's Portfolio
Momentum Often Loses Steam in Practice
A Silver-Rated ETF for Core Bond Exposure
Sell Underperforming Funds With Large Personal Unrealized Capital Gains?
ETF Alternatives to Money Funds
3rd Party Research Disclosure /public-5:1:10
Market Data Disclosure