How does ARK DIET differ from ARK’s other ETFs?​

ARK’s traditional ETFs (ARKK, ARKF, ARKG, ARKQ, ARKW, ARKX) offer full exposure to the underlying investments. This means if an ARK ETF goes up 20%, the investor gains 20% (less fees), and if it goes down 20%, the investor loses 20% (plus fees).

In contrast, a buffered ETF like ARK’s DIET Buffer ETFs gives investors partial exposure. Investors don’t lose as much in a down market because of the built-in buffer. However, the investor also doesn’t gain as much as the underlying ETF in a strong market because of the limited upside participation rate. 

The key difference is that ARK’s DIET Buffer ETFs use options strategies to shape returns, aiming to reduce risk while still offering potential for gains. It’s a more structured approach, ideal for individuals who want exposure to innovation but with more predictability and less volatility.