How does ARK’s defined outcome/buffer ETFs differ from competitors?
Unlike many defined outcome ETFs that passively track broad market indexes, the ARK Defined Innovation Exposure Term (DIET) ETFs are unique because they track an actively managed underlying (reference) asset in ARKK – the ARK Innovation ETF. Our team selects holdings in ARKK based on forward-looking research into the technologies, companies, and platforms we believe will lead and benefit most from disruptive innovation.
Index-based defined outcome strategies are inherently backward-looking, often overexposed to mature companies and underexposed to emerging leaders. In contrast, the ARK DIET ETFs link to ARK’s actively managed innovation strategies, ensuring the buffer and upside potential are applied to a portfolio built for where technology is going, not where it has been.