"ARKK" is extremely tech heavy and holds just 62 companies that cover 6 sectors in the stock market, however, 93.5% of the ETF is held in just 4 sectors. Companies held in the "ARKK" ETF can be considered "ahead of the curve" and unproven, therefore very risky, this ETF has a high risk to high reward focus. ARK Investment defines disruptive innovation as the introduction of a technologically enabled new product or service that potentially changes the way the world works. "ARKK" is a relatively new ETF that seeks to invest in companies who have "disruptive innovations". This fund carries a medium-high risk level, long term holding would be beneficial. Over the last 10 years, the fund has averaged 72.8% per year. In addition, "QQQ" has $175 billion in assets under management and it managed to earn 45% per year over the last 5 years. This ETF carries an expense ratio of 0.20% which makes it nearly 7 times more expensive than "VOO", however, 0.20% just means $2 in fees per $1,000 invested. "QQQ" is a very tech heavy fund because the Nasdaq 100 is very tech heavy, with that being said the fund still covers 6 sectors in the stock market and holds 102 companies. If you're looking to hook up directly with the Nasdaq 100, this should be your choice to gain access to the tech heavy index. "QQQ" has to be considered as the market leading Nasdaq 100 index ETF. This fund carries a medium risk level, long term holding would be beneficial. Over the last 10 years, the fund averaged 22.8% per year. To go further, "VOO" has $232 billion in assets under management and it managed to earn 21% per year over the last 5 years. This ETF also carries one of the lowest expense ratios in the industry, a pedestrian 0.03% (30 cents in fees per $1,000 invested) which makes it very affordable.
"VOO" has supreme diversification, it holds 507 companies that cover 11 sectors in the stock market. "VOO" is one of the market leading S&P 500 index ETFs, it's a necessary fund if you're looking to connect directly with the S&P 500 index. "VOO" focuses on tracking the S&P 500 index, "QQQ" focuses on tracking the Nasdaq 100 index, and "ARKK" is an actively managed fund that focuses on investing in "disruptive innovation" (next gen products and service) companies. "VOO", "QQQ", and "ARKK" are three of the most popular ETFs in the market right now. Maybe you've heard of these ETFs (exchange traded funds) before and maybe you haven't, regardless we will be breaking them down for your viewing pleasure.