Honestly this is just rubbish.

2022-06-07

Honestly this is just rubbish. If she does well, the article will be praising her, saying she's so smart and that she only concentrated on the correct few. Everything is conclusion that no one can guess everything correctly, just that these big players have the funds to wait till their portfolio sees an upturn. Meanwhile the small time retail investors will just get dragged along and smack around. So do your due diligence, invest only what you can lose if you are not going to seriously look into everything.

Here's the Little-Known Reason Why Cathie Wood's Ark Innovation ETF Is Having Such a Bad Year

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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ValuInvestor
2022-06-07
ValuInvestor
Investing other people’s money
yang9999
2022-06-07
yang9999
👍
tkkkkkkkkkk
2022-06-07
tkkkkkkkkkk
👍
chon
2022-06-07
chon
[Happy]
rockets
2022-06-07
rockets
ok
Berrylike
2022-06-07
Berrylike
👍

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Meanwhile the small time retail investors will just get dragged along and smack around. So do your due diligence, invest only what you can lose if you are not going to seriously look into everything.</p><p><br></p></body></html>","htmlText":"<html><head></head><body><p>Honestly this is just rubbish. If she does well, the article will be praising her, saying she's so smart and that she only concentrated on the correct few. Everything is conclusion that no one can guess everything correctly, just that these big players have the funds to wait till their portfolio sees an upturn. Meanwhile the small time retail investors will just get dragged along and smack around. So do your due diligence, invest only what you can lose if you are not going to seriously look into everything.</p><p><br></p></body></html>","text":"Honestly this is just rubbish. If she does well, the article will be praising her, saying she's so smart and that she only concentrated on the correct few. Everything is conclusion that no one can guess everything correctly, just that these big players have the funds to wait till their portfolio sees an upturn. Meanwhile the small time retail investors will just get dragged along and smack around. So do your due diligence, invest only what you can lose if you are not going to seriously look into everything.","highlighted":2,"essential":1,"paper":1,"likeSize":18,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/9053477409","repostId":2241031259,"repostType":4,"repost":{"id":"2241031259","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1654566171,"share":"https://www.laohu8.com/m/news/2241031259?lang=&edition=full","pubTime":"2022-06-07 09:42","market":"us","language":"en","title":"Here's the Little-Known Reason Why Cathie Wood's Ark Innovation ETF Is Having Such a Bad Year","url":"https://stock-news.laohu8.com/highlight/detail?id=2241031259","media":"Dow Jones","summary":"Funds that make concentrated bets on a few stocks are paying the price in this rough marketBy now al","content":"<html><head></head><body><p>Funds that make concentrated bets on a few stocks are paying the price in this rough market</p><p>By now almost everyone knows that <a href=\"https://laohu8.com/S/ARKK\">ARK Innovation ETF</a> (ARKK) is having a very bad year. But poor stock selection is not the only reason why the fund, run by celebrated stock-fund manager Cathie Wood, is doing so poorly. Another, overlooked, culprit: the portfolio is heavily concentrated in just a few stocks.</p><p>According to Morningstar Direct, ARK Innovation&#39;s 10 largest holdings represent  58.9% of the portfolio. That&#39;s more concentrated than 93% of all other actively managed U.S. equity funds (both open-end and ETF) in Morningstar&#39;s database. It&#39;s more than double the concentration of the S&amp;P 500  index, where the 10-biggest stocks represent 27.7% of the total market cap of the index.</p><p>This year through June 2, according to FactSet, ARK Innovation is down 51.8%, more than four times the comparable total return loss of 11.9% for the S&amp;P 500.</p><p>To find out if ARK Innovation is more the exception than the rule, I analyzed the year-to-date returns of the 10% of actively-managed U.S. equity funds in Morningstar&#39;s database with the most concentrated portfolios. These are the funds with the highest percentages allocated to their 10 largest holdings. On average, this decile of funds lost 13.3% through June 2, according to Factset, 1.4 percentage points worse than the S&amp;P 500.</p><p>Nor is 2022 a fluke. Over the past 10 years, this most-concentrated decile lagged the S&amp;P 500 by 2.0 annualized percentage points -- 14.7% annualized to 12.7%.</p><p>To be fair, lagging the market is not just confined to the decile of funds with the most concentrated portfolios. Nevertheless, these averages show that making big and bold bets by no means guarantees success.</p><h2>Concentration can pay off</h2><p>This otherwise dismal picture of concentrated funds isn&#39;t the end of the story. It turns out that a greater proportion of such funds beat the market over the long term than less-concentrated funds. Over the past decade, for example, 27.6% of the funds in the most concentrated decile beat the S&amp;P 500&#39;s total return, versus 12% among funds outside this most concentrated decile.</p><p>What this means: If you were picking a fund at random from the decile of most concentrated funds, you&#39;d have about a <a href=\"https://laohu8.com/S/AONE.U\">one</a>-in-four chance of beating the market. In contrast, you&#39;d have a one-in-eight chance of beating the market when picking a fund at random from funds not in this most-concentrated decile.</p><p>That&#39;s the good news. The bad news is that funds in the most-concentrated decile also have a greater chance of significantly lagging the market.</p><p>To quantify this good news/bad news story, consider the range of 10-year returns for the least- and most-concentrated portfolios. For funds in the most concentrated decile, that range extends from plus 22.6% annualized to minus 19.9% -- a spread of 42.5 percentage points. For funds in the least concentrated decile, that range extends from plus 13.7% annualized to plus 6.8% -- a spread of 6.9 percentage points.</p><p>The investment implication: You can play it safe or go for broke. When you play it safe, you forfeit the possibility of beating the market by very much or at all, in order to reduce the risk of lagging the market by large amounts. It&#39;s just the opposite when you go for broke: You incur the risk of big losses in order to have a chance at big gains. The choice is yours.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Here's the Little-Known Reason Why Cathie Wood's Ark Innovation ETF Is Having Such a Bad Year</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHere's the Little-Known Reason Why Cathie Wood's Ark Innovation ETF Is Having Such a Bad Year\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2022-06-07 09:42</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Funds that make concentrated bets on a few stocks are paying the price in this rough market</p><p>By now almost everyone knows that <a href=\"https://laohu8.com/S/ARKK\">ARK Innovation ETF</a> (ARKK) is having a very bad year. But poor stock selection is not the only reason why the fund, run by celebrated stock-fund manager Cathie Wood, is doing so poorly. Another, overlooked, culprit: the portfolio is heavily concentrated in just a few stocks.</p><p>According to Morningstar Direct, ARK Innovation&#39;s 10 largest holdings represent  58.9% of the portfolio. That&#39;s more concentrated than 93% of all other actively managed U.S. equity funds (both open-end and ETF) in Morningstar&#39;s database. It&#39;s more than double the concentration of the S&amp;P 500  index, where the 10-biggest stocks represent 27.7% of the total market cap of the index.</p><p>This year through June 2, according to FactSet, ARK Innovation is down 51.8%, more than four times the comparable total return loss of 11.9% for the S&amp;P 500.</p><p>To find out if ARK Innovation is more the exception than the rule, I analyzed the year-to-date returns of the 10% of actively-managed U.S. equity funds in Morningstar&#39;s database with the most concentrated portfolios. These are the funds with the highest percentages allocated to their 10 largest holdings. On average, this decile of funds lost 13.3% through June 2, according to Factset, 1.4 percentage points worse than the S&amp;P 500.</p><p>Nor is 2022 a fluke. Over the past 10 years, this most-concentrated decile lagged the S&amp;P 500 by 2.0 annualized percentage points -- 14.7% annualized to 12.7%.</p><p>To be fair, lagging the market is not just confined to the decile of funds with the most concentrated portfolios. Nevertheless, these averages show that making big and bold bets by no means guarantees success.</p><h2>Concentration can pay off</h2><p>This otherwise dismal picture of concentrated funds isn&#39;t the end of the story. It turns out that a greater proportion of such funds beat the market over the long term than less-concentrated funds. Over the past decade, for example, 27.6% of the funds in the most concentrated decile beat the S&amp;P 500&#39;s total return, versus 12% among funds outside this most concentrated decile.</p><p>What this means: If you were picking a fund at random from the decile of most concentrated funds, you&#39;d have about a <a href=\"https://laohu8.com/S/AONE.U\">one</a>-in-four chance of beating the market. In contrast, you&#39;d have a one-in-eight chance of beating the market when picking a fund at random from funds not in this most-concentrated decile.</p><p>That&#39;s the good news. The bad news is that funds in the most-concentrated decile also have a greater chance of significantly lagging the market.</p><p>To quantify this good news/bad news story, consider the range of 10-year returns for the least- and most-concentrated portfolios. For funds in the most concentrated decile, that range extends from plus 22.6% annualized to minus 19.9% -- a spread of 42.5 percentage points. For funds in the least concentrated decile, that range extends from plus 13.7% annualized to plus 6.8% -- a spread of 6.9 percentage points.</p><p>The investment implication: You can play it safe or go for broke. When you play it safe, you forfeit the possibility of beating the market by very much or at all, in order to reduce the risk of lagging the market by large amounts. It&#39;s just the opposite when you go for broke: You incur the risk of big losses in order to have a chance at big gains. The choice is yours.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"ARKF":"ARK Fintech Innovation ETF","ARKW":"ARK Next Generation Internation ETF","ARKG":"ARK Genomic Revolution ETF","ARKK":"ARK Innovation ETF","ARKQ":"ARK Autonomous Technology & Robotics ETF"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2241031259","content_text":"Funds that make concentrated bets on a few stocks are paying the price in this rough marketBy now almost everyone knows that ARK Innovation ETF (ARKK) is having a very bad year. But poor stock selection is not the only reason why the fund, run by celebrated stock-fund manager Cathie Wood, is doing so poorly. Another, overlooked, culprit: the portfolio is heavily concentrated in just a few stocks.According to Morningstar Direct, ARK Innovation's 10 largest holdings represent  58.9% of the portfolio. That's more concentrated than 93% of all other actively managed U.S. equity funds (both open-end and ETF) in Morningstar's database. It's more than double the concentration of the S&P 500  index, where the 10-biggest stocks represent 27.7% of the total market cap of the index.This year through June 2, according to FactSet, ARK Innovation is down 51.8%, more than four times the comparable total return loss of 11.9% for the S&P 500.To find out if ARK Innovation is more the exception than the rule, I analyzed the year-to-date returns of the 10% of actively-managed U.S. equity funds in Morningstar's database with the most concentrated portfolios. These are the funds with the highest percentages allocated to their 10 largest holdings. On average, this decile of funds lost 13.3% through June 2, according to Factset, 1.4 percentage points worse than the S&P 500.Nor is 2022 a fluke. Over the past 10 years, this most-concentrated decile lagged the S&P 500 by 2.0 annualized percentage points -- 14.7% annualized to 12.7%.To be fair, lagging the market is not just confined to the decile of funds with the most concentrated portfolios. Nevertheless, these averages show that making big and bold bets by no means guarantees success.Concentration can pay offThis otherwise dismal picture of concentrated funds isn't the end of the story. It turns out that a greater proportion of such funds beat the market over the long term than less-concentrated funds. Over the past decade, for example, 27.6% of the funds in the most concentrated decile beat the S&P 500's total return, versus 12% among funds outside this most concentrated decile.What this means: If you were picking a fund at random from the decile of most concentrated funds, you'd have about a one-in-four chance of beating the market. In contrast, you'd have a one-in-eight chance of beating the market when picking a fund at random from funds not in this most-concentrated decile.That's the good news. The bad news is that funds in the most-concentrated decile also have a greater chance of significantly lagging the market.To quantify this good news/bad news story, consider the range of 10-year returns for the least- and most-concentrated portfolios. For funds in the most concentrated decile, that range extends from plus 22.6% annualized to minus 19.9% -- a spread of 42.5 percentage points. For funds in the least concentrated decile, that range extends from plus 13.7% annualized to plus 6.8% -- a spread of 6.9 percentage points.The investment implication: You can play it safe or go for broke. When you play it safe, you forfeit the possibility of beating the market by very much or at all, in order to reduce the risk of lagging the market by large amounts. It's just the opposite when you go for broke: You incur the risk of big losses in order to have a chance at big gains. The choice is yours.","news_type":1},"isVote":1,"tweetType":1,"viewCount":356,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"upFlag":false,"length":424,"xxTargetLangEnum":"ORIG"},"commentList":[{"id":102195196,"gmtCreate":1654580890200,"gmtModify":1663251246729,"authorId":4087361572396550,"author":{"id":4087361572396550,"authorId":4087361572396550,"name":"ValuInvestor","avatar":"https://static.tigerbbs.com/5a962911d3cd0763a9f0cb01392cacd9","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9053477409,"type":1,"supId":0,"prevId":0,"content":"Investing other people’s money","text":"Investing other people’s money","html":"Investing other people’s money","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0},{"id":102195144,"gmtCreate":1654580654821,"gmtModify":1663251248648,"authorId":3563945035873831,"author":{"id":3563945035873831,"authorId":3563945035873831,"name":"yang9999","avatar":"https://static.tigerbbs.com/1c2d833e7c5f9fba860301859d059896","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9053477409,"type":1,"supId":0,"prevId":0,"content":"👍","text":"👍","html":"👍","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0},{"id":102195174,"gmtCreate":1654580798124,"gmtModify":1663251248126,"authorId":3582157544208464,"author":{"id":3582157544208464,"authorId":3582157544208464,"name":"tkkkkkkkkkk","avatar":"https://static.tigerbbs.com/324b8778a99b6139eca542152f970355","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9053477409,"type":1,"supId":0,"prevId":0,"content":"👍","text":"👍","html":"👍","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0},{"id":102195154,"gmtCreate":1654580679103,"gmtModify":1663251247432,"authorId":3569542202080687,"author":{"id":3569542202080687,"authorId":3569542202080687,"name":"chon","avatar":"https://community-static.tradeup.com/news/cd6a4dbaad473c799aa063cea7349e68","vip":1,"currentWearingBadge":{"badgeId":"4e86300037264823b9bb00ff44fc0f19-6","templateUuid":"4e86300037264823b9bb00ff44fc0f19","name":"Live trading challenger","description":"for 12 months","bigImgUrl":"https://community-static.tradeup.com/news/b76669c276447115bf9cde881b0cba68","smallImgUrl":"https://community-static.tradeup.com/news/6d5ffd25685d045ade4bb948ef8fd5c3","grayImgUrl":"https://community-static.tradeup.com/news/076cd4597f6ea22aabdd4f6a12b2c293","redirectLinkEnabled":0,"redirectLink":"https://www.tigerbrokers.com.sg/activity/market/2023/stock-contest?adcode=StockContest2023","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.09.03","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":5600},"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":3,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9053477409,"type":1,"supId":0,"prevId":0,"content":"[Happy]","text":"[Happy]","html":"[Happy]","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0},{"id":102195194,"gmtCreate":1654580888374,"gmtModify":1663251246566,"authorId":4094533838196340,"author":{"id":4094533838196340,"authorId":4094533838196340,"name":"rockets","avatar":"https://static.tigerbbs.com/d8742189b73bca37617d82c07dc6ae28","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9053477409,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0},{"id":102195136,"gmtCreate":1654580591539,"gmtModify":1663251246559,"authorId":3581628095158138,"author":{"id":3581628095158138,"authorId":3581628095158138,"name":"Berrylike","avatar":"https://static.tigerbbs.com/4878189d5bac62b3b7d010c5805981e4","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9053477409,"type":1,"supId":0,"prevId":0,"content":"👍","text":"👍","html":"👍","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0}],"isCommentEnd":false,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/9053477409"}