This is the flagship thematic active ETF from Ark Invest, led by Cathie Wood. Going beyond simple healthcare sector investing, it aims to identify companies that are pioneering new paths for treating disease through gene analysis and gene editing technologies.

It is suited to aggressive investors who believe in the long-term growth potential of disruptive innovation in biotechnology and can tolerate high volatility.

It is an actively managed ETF launched by Ark Invest in 2014.

Through bottom-up research, the fund holds a portfolio of 40 to 60 companies with strong technological advantages and significant market impact. It covers the full range of genomics, including gene editing (CRISPR), liquid biopsy, and agricultural biology, and responds proactively to advances in specific technologies.

• ARK Invest's distinctive capability in analyzing technological innovation
• High concentration in specific technology themes and active management

Assets under management (AUM) are $2.4B, and the expense ratio is 0.75% per year.

Because of its active strategy focused on disruptive innovation themes, the management fee is somewhat high, but the fund offers a portfolio that is differentiated from typical healthcare indexes.

The fund has shown sharp price volatility in response to shifts in biotech sector sentiment and the interest rate environment, but it continues to look for rebound opportunities based on technological progress and clinical results at its major holdings.

Fund flows tend to be highly volatile depending on investor interest in thematic investing, and inflows stand out when the commercial viability of innovative technologies becomes more concrete.

Its strength is high growth potential from concentrated investment in specific innovation areas, while its weaknesses are very high price volatility and uncertainty.

The MAGS, GRNY, XLSR, and SSUS shown in the table are ETFs that pursue a variety of innovation themes or sector rotation. Among them, ARKG specializes in biotechnology innovation. Direct alternatives include IBB, which tracks the Nasdaq Biotechnology Index, and XBI, which diversifies across small and mid-sized biotech companies. If you want to focus solely on gene editing technology, IDNA is also worth considering.

Here are the points to review before investing in ARKG. Because of the nature of the biotechnology theme, this product is highly aggressive, so position size and holding period should be decided carefully.

Biotech innovators can take a long time to generate profits, and during periods of rising interest rates, higher discount rates on future value can weigh on share prices.

This is a high-risk, high-return active solution suited to investors who aim for long-term asset growth by investing early in the genomics innovations that could change the future of the healthcare industry.