It's always fun to see what funds are most searched on Finnyvest, our stock & fund research tool. So far this week, the most popular funds being researched are thematic exchange-traded funds (ETFs) that yielded triple-digit returns in the last year!
The top trending is the suite of ETFs issued by ARK Invest. ARK's actively-managed ETFs invest in "disruptive innovations" to seek long-term growth of capital. These funds are concentrated, with anywhere between 30-55 holdings, and come with higher than average expense ratios (0.75 - 0.79%) because they are actively managed. In other words, the fund manager has full discretion over which stocks make their way into and out of the fund (versus simply tracking an index).
Here are the snapshots of the top three trending ARK ETFs researched by our members—ARKK, ARKW, and ARKG—and here's a handy dandy comparison of all three.
Next are clean energy and solar funds. With an ever-growing emphasis on clean energy, alt-energy ETFs such as ICLN and TAN (and the comparison) are becoming a mainstream theme. Unlike ARK funds, they are passively managed. And like the ARK funds, they have high expense ratios and are concentrated with only 30 holdings apiece.
Please remember this though: past performance is not indicative of future returns. So do lots of research and understand your risks before diving into any one of these funds. And...diversify, diversify, diversify!