31% of the Ark Fintech Innovation ETF is concentrated in just four stocks, according to Yahoo Finance. This means that a significant portion of the ETF’s investments are allocated to only a few companies. The ETF focuses on fintech innovation, which includes companies that leverage technology to disrupt traditional financial services.
This level of concentration in just four stocks may pose risks for investors, as the performance of these companies can heavily impact the overall performance of the ETF. On the other hand, it also presents potential opportunities for significant returns if these companies perform well.
Investors should consider the level of risk they are comfortable with before investing in the Ark Fintech Innovation ETF, given its concentrated holdings in just a few stocks. Diversification is often recommended to reduce risk, but concentrated portfolios can also lead to outsized returns if the selected companies outperform the broader market.