Investing in growth stocks is a great way to boost your portfolio's value over the long term. But picking the right stock isn't always easy. You could go with the top tech stocks on the NASDAQ but you also don't want to limit yourself to just one index or exchange. An exchange-traded fund (ETF) that could give you some exciting and diverse growth opportunities is the ARK Innovation ETF (NYSE:ARKK).
The fund is actively managed and has a theme of "disruptive innovation" as it looks for cutting-edge technologies and companies that are changing the way things work. Its top holding is electric automaker Tesla, which has an 8.6% weight in the fund. Roku, Teladoc Health, and Square are the three other stocks that each make up at least 5% of the total holdings.
ARK also holds smaller companies in its portfolio, including medical genetics company Invitae (NYSE:NVTA) which has a market cap of around $10 billion but is one of the ETF's top 10 holdings.
Over the past 12 months, the fund has risen around 170% in value, blowing past the NASDAQ, which has climbed by 46% during the same time frame. Its net expense ratio of 0.75% is a bit higher than other funds but it also provides a yield of 1.6%. And with a broad array of growth stocks in its portfolio spanning healthcare, communication services, technology, and other sectors, the price is justifiable given what the fund offers.
If you're not sure what to invest in, ARK Innovation could make for an attractive option.
