Let’s take a look at why risk-on investors may want to consider the ARK Genomic Revolution ETF (ARKG).
See our Active ETFs Channel to learn more about this investment vehicle and its suitability for your portfolio.
Many of the ETF’s largest holdings have outperformed over the past month, including:
|Holding||Ticker||ARKG’s Allocation||1-Month Performance|
|Exact Sciences Corp.||EXAS||9.08%||0.2334|
|Pacific Biosciences of California Inc.||PACB||5.39%||15.94%|
|Adaptive Biotechnologies Corp.||ADPT||3.57%||6.70%|
Unlike most growth stocks, biotech companies tend to be highly idiosyncratic. The success of any single company depends more on clinical trials or partnership deals than the overall economy. Moreover, people need healthcare regardless of how the economy is doing, making these businesses more recession-resistant than most.
ARKG takes a venture capital-like approach to next-generation biotech opportunities. While individual companies may have a high level of risk, the collective portfolio provides investors with diversified exposure, enabling them to capitalize on a unique mega-trend that’s likely to disrupt the broader biotech and pharma space.
Bank of America strategists recently recommended that clients stay bearish on risk assets in the first half of 2023 and wait until the year’s second half to become buyers. As a result, they are shorting tech companies and using barbell strategies on credit instruments while going long on gold, copper, industrials, and other recession-friendly sectors and sub-sectors.
Take a look at our recently launched Model Portfolios to see how you can rebalance your portfolio.
All data as of November 25, 2022