ARKG ETF

Wall Street was upbeat last week with the Dow Jones and the S&P 500 hitting all-time highs last week.

ARKG's top holdings were replaced due to poor performance, highlighting the fund's vulnerability to interest rate changes and high concentration in cash-burning companies. ARKG underperformed significantly compared to peers and the Nasdaq, especially during tighter monetary conditions, due to its concentrated portfolio and high valuation multiples. Virtus, with a more diversified and less concentrated portfolio, outperformed ARKG, suggesting that ARKG needs restructuring to better handle interest rate changes.

Ark Funds pull exclusively from different slivers of the technology sector that also tend to be the most volatile. Economic conditions can make a bigger performance difference over the long term than most investors might expect.

Wall Street roared back after a sell-off early in the month as fears of recession eased. The technology sector, which bore the biggest brunt, rebounded strongly and once again led the market over the past week.

July witnessed the "Great Rotation" in the U.S. stock market as investors shunned the hot technology stocks in favor of smaller companies and other sectors, which are the bigger beneficiaries of the Fed rate cuts.

Wall Street offered a mixed performance last week.

Genomics is rapidly advancing, shaping our understanding of health, disease, and life itself. Consider investing in the ARK Genomic Revolution ETF for exposure to leading genomics companies. ARKG's active management may not be outperforming compared to passive genomics ETFs like PBE, with potential regulatory and concentration risks.

At Nvidia's last week's GTC AI conference, the company announced partnerships in the healthcare sector, representing a strategic move toward expanding its revenue streams beyond tech sectors.

ARK Genomic Revolution ETF warrants a hold rating due to multiple roadblocks preventing solid returns, including underdeveloped technology, legal hurdles, and unresolved ethical dilemmas. ARKG has a relatively high expense ratio with no dividend yield, and its performance has significantly underperformed the S&P 500 Index. The fund's holdings are concentrated in the healthcare sector, with little overlap with other peer genomics-related funds.