What is a reference price?​

A buffered ETF, such as the ARK DIET ETFs, tied to an actively managed reference fund—for ARK DIET, ARKK – the ARK Disruptive Innovation ETF—can be especially appealing because it combines two powerful ideas:

1) Active Management = Growth Potential

ARKK is an actively managed ETF that invests in cutting-edge technologies including artificial intelligence, robotics, gene editing, and blockchain. The fund’s managers research and select companies we believe are likely to experience significant growth. This makes ARKK potentially more dynamic than a traditional index fund.

2) Buffered Structure = Risk Management 

While ARKK offers exciting upside potential, it can also be volatile, meaning its value can rise or fall quickly. A buffered ETF, such as ARK DIET, helps smooth out those swings by protecting the downside and limiting exposure to sharp drops (50% downside protection for ARK DIET ETFs). 

Together, this structure gives investors access to high-growth innovation themes while providing a more stable ride than traditional ETF investing over a fixed 12-month period, with clearly defined risk and reward. 

It’s a way for investors to stay engaged with innovation—without needing to stomach the full ups and downs of a high-growth portfolio. That makes it suitable for more cautious investors or those with shorter investment timelines.