innovative ETF

What is an Innovative ETF? All you need to know

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 are 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 per cent 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 per cent.  

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.  

TickerFund NameIssuerAUMExpense ratio3-month TRSegment
QQQInvesco QQQ TrustInvesco$182.04B  0.20%-11.83%Equity: U.S. – Large Cap
ARKKARK Innovation ETFARK$11.99B00.75%    32.77%Equity: Global Broad Thematic
FDNFirst Trust Dow Jones Internet Index FundFirst Trust$7.19B  0.51%-18.31%Equity: U.S. Internet
KWEBKraneShares CSI China Internet ETFCICC$6.94B0.76%-18.29%Equity: China Internet
QQQMInvesco NASDAQ 100 ETFInvesco$3.69B0.15%-11.71%Equity: U.S. – Large Cap
ARKWARK Next Generation Internet ETFARK$2.38B0.83%-34.31%Equity: Global Internet
BOTZGlobal X Robotics & Artificial Intelligence ETFMirae Asset Global Investments Co., Ltd.$2.09B00.68%  -18.31%Equity: Developed Markets Robotics & AI
ROBOROBO Global Robotics and Automation Index ETFExchange-Traded Concepts$1.65B00.95%  -11.82%Equity: Global Robotics & AI
ARKQARK Autonomous Technology & Robotics ETFARK$1.56B0.75%-18.51%Equity: Global Robotics & AI
ARKFARK Fintech Innovation ETFARK$1.53B0.75%-34.75%Equity: Global FinTech

Now let us look at the top and bottom performers. 

Top ETF Performers according to etf.com 
top etf performer innovative ETF
Bottom ETF Performers, according to etf.com 
Bottom ETF performer, innovative ETF

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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