ARKK vs. FTEC: Capitalization and Strategy
4 min read
By Ron Koren, ETF Insider

ARKK vs. FTEC: Capitalization and Strategy

Exchange-Traded Funds (ETFs) have become increasingly popular in the world of finance, offering investors a convenient way to gain exposure to various sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: ARKK (ARK Innovation ETF) and FTEC (Fidelity MSCI Information Technology Index ETF). We will delve into essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

ARKK vs. FTEC: Overview

ARKK and FTEC are two ETFs that cater to different segments of the market. ARKK, managed by ARK Invest, focuses on innovative and disruptive technologies, while FTEC, offered by Fidelity, tracks the performance of companies within the information technology sector. These differences in focus result in distinct investment opportunities and risks, which we will explore further in this comparison.

ARKK vs. FTEC: Sectors and Top Holdings

ARKK primarily invests in companies involved in cutting-edge technologies like artificial intelligence, robotics, and genomics. Some of its top holdings include Tesla, Inc., Square, Inc., and Teladoc Health, Inc. On the other hand, FTEC concentrates on the information technology sector, with top holdings such as Apple Inc., Microsoft Corporation, and NVIDIA Corporation. Understanding these sectors and top holdings is crucial for investors seeking exposure to specific industries.

ARKK overlap ARKK VS FTECARKK overlap ARKK VS FTEC

ARKK vs. FTEC: Capitalization and Strategy

ARKK has gained significant popularity in recent years, leading to substantial assets under management (AUM). Its investment strategy is centered around identifying companies with disruptive technologies that have the potential for rapid growth. In contrast, FTEC follows a more traditional index-tracking approach within the information technology sector. The differences in capitalization and investment strategy can have a significant impact on returns and risk profiles, making it essential for investors to align their goals and risk tolerance accordingly.

ARKK vs. FTEC: Tracking and Exposure

ARKK's goal is to provide investors with exposure to innovation and disruptive technologies. To achieve this, it actively manages its portfolio by selecting companies it believes have the most potential for growth. FTEC, on the other hand, tracks the performance of an index composed of companies in the information technology sector. Understanding the tracking methods and exposure strategies of these ETFs can help investors make informed decisions based on their investment objectives and preferences.

Conclusion

ARKK and FTEC are distinct ETFs, each offering a unique approach to investing in the technology and innovation sectors. For investors seeking deeper insights, including detailed information on holdings, correlations, and overlaps, ETF Insider is the ultimate tool to explore. This user-friendly app provides comprehensive data on these and other financial instruments, aiding investors in making informed decisions.

Disclaimer: This article does not provide any investment advisory services.

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