If I own an ARK ETF, should I still consider an allocation to the buffered ETF, or is it an either/or?
It’s not either/or—investors can hold both. Here’s how they can work together for the ARK DIET Buffer ETFs, which have ARKK – the ARK Innovation ETF, as their reference fund:
- ARKK gives investors full participation in innovation growth—great for long-term, aggressive strategies.
- The ARK DIET ETFs give investors protection against downturns—ideal when an investor want to reduce short-term risk.
By combining both:
- An investor can stay invested in innovation through changing markets while adjusting their risk exposure based on personal needs or market cycles.
Some investors use the buffered ETF as a:
- “Soft entry” into the reference fund
- Risk-managed alternative during volatile times
- A partial replacement when nearing a financial milestone.