What is an Innovative ETF?
In the previous article, we talked about what is healthcare ETF. In this article, we will discuss what is innovative ETF.
Many organizations’ business models include acquiring fresh perspectives through research and then using those findings to develop and execute new technologies.
Much of these efforts are expected to be in the medical sector, which will have a significant economic impact and spread. The same is true about digital technology, which will likely result in a complete makeover of different sectors like supply chain and sales processes.
Why invest in Innovative ETFs?
Innovation propels the global economy. New exchange-traded funds (ETFs) were put out in the market to provide exposure to companies that have developed new goods, patents, or technology.
Index providers assess firms based on their innovation objectives and create unique indices based on this data. Some ETFs which enable you to invest in emerging technology are enumerated in this investment guide.
All ETFs that allow you to invest in innovative technology is on this list. Innovative ETFs manage $233.55 billion in assets management through 91 ETFs trading on US exchanges. The expense ratio is 0.69 percent on average.
With $182.04 billion in assets, the Invesco QQQ Trust QQQ is the largest Innovative ETF. The best-performing Innovative ETF in the previous year was IEFN, which returned 20.26 percent.
The WisdomTree Battery Value Chain and Innovation Fund WBAT was the most recent ETF in the Innovative category.
List of top 10 Innovative ETFs
Here is a list of the top 10 ETFs based on their AUM. AUM is the Assets Under Management which means the total market value of the investments that a person or entity handles on behalf of investors.
|Ticker||Fund Name||Issuer||AUM||Expense ratio||3-month TR||Segment|
|QQQ||Invesco QQQ Trust||Invesco||$182.04B||0.20%||-11.83%||Equity: U.S. – Large Cap|
|ARKK||ARK Innovation ETF||ARK||$11.99B||00.75%||32.77%||Equity: Global Broad Thematic|
|FDN||First Trust Dow Jones Internet Index Fund||First Trust||$7.19B||0.51%||-18.31%||Equity: U.S. Internet|
|KWEB||KraneShares CSI China Internet ETF||CICC||$6.94B||0.76%||-18.29%||Equity: China Internet|
|QQQM||Invesco NASDAQ 100 ETF||Invesco||$3.69B||0.15%||-11.71%||Equity: U.S. – Large Cap|
|ARKW||ARK Next Generation Internet ETF||ARK||$2.38B||0.83%||-34.31%||Equity: Global Internet|
|BOTZ||Global X Robotics & Artificial Intelligence ETF||Mirae Asset Global Investments Co., Ltd.||$2.09B||00.68%||-18.31%||Equity: Developed Markets Robotics & AI|
|ROBO||ROBO Global Robotics and Automation Index ETF||Exchange-Traded Concepts||$1.65B||00.95%||-11.82%||Equity: Global Robotics & AI|
|ARKQ||ARK Autonomous Technology & Robotics ETF||ARK||$1.56B||0.75%||-18.51%||Equity: Global Robotics & AI|
|ARKF||ARK Fintech Innovation ETF||ARK||$1.53B||0.75%||-34.75%||Equity: Global FinTech|
Now let us look at the top and bottom performers.
Top ETF Performers according to etf.com
Bottom ETF Performers, according to etf.com
Innovation is the very backbone of our society; thus, it’s bound to grow in the future and give handsome returns in the long run.
Investments in innovative ETFs are perfect for those who belong to the ‘buy and hold’ type of investor category and have long-term goals.
Consult an expert advisor to get the right plan for you
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