The Structure of Exchange-Traded Fund

Exchange-Traded Funds (ETFs)
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Table of Contents TOC \o "1-3" \h \z \u AARK Innovation PAGEREF _Toc75784766 \h 3Health sector PAGEREF _Toc75784767 \h 4ARK Genomic ETF (ARK G) PAGEREF _Toc75784768 \h 4Financials PAGEREF _Toc75784769 \h 5SPDR S&P Regional Banking ETF (KRE) PAGEREF _Toc75784770 \h 5Real estate Sector ETF PAGEREF _Toc75784771 \h 5 VanEck Vectors Mortgage REIT Income ETF (MORT) PAGEREF _Toc75784772 \h 6Energy Sector ETF PAGEREF _Toc75784774 \h 6Invesco Solar ETF (TAN) PAGEREF _Toc75784775 \h 7Thematic ETF PAGEREF _Toc75784776 \h 8Advantages of Thematic ETF PAGEREF _Toc75784777 \h 9Disadvantages PAGEREF _Toc75784778 \h 9Index ETFs PAGEREF _Toc75784779 \h 9Construction of the Index PAGEREF _Toc75784780 \h 10Advantages of Index ETFs PAGEREF _Toc75784781 \h 10Disadvantages PAGEREF _Toc75784782 \h 11Sector ETFs PAGEREF _Toc75784783 \h 11Invesco QQQ trust PAGEREF _Toc75784784 \h 12VanEck Vectors Oil Services ETF PAGEREF _Toc75784785 \h 13ALBILAD ETF PAGEREF _Toc75784786 \h 14HSBC MSCI Tadawal 30 ETF PAGEREF _Toc75784787 \h 14Falcom Equity ETF PAGEREF _Toc75784788 \h 15Derivative as leverage ETFs PAGEREF _Toc75784789 \h 15References PAGEREF _Toc75784790 \h 17
Macro-Level Research
ARK Innovation
ARK can be best described as the disruptive innovation of a new service or product that is technologically enabled and has the ability to change the way the world works. In addition, this is an investment that seeks the growth of the capital on a long-term basis. The investment fund is normally an actively exchange managed fund (EFT) that primarily invests 65% of its asset foreign and domestic equity securities of the company’s funds investment themes relevant to disruptive innovation(‘’ARK INNOVATION ETF’’,2021). The foreign equity securities investments are both found in developed and emerging markets. The funds are non-diversified since the fund can be invested in the Global Depository Receipts (GDR), American Depository Receipts (ADR) as a foreign security, and securities listed on the foreign exchanges.
Most of the companies with ARK benefit from the development of new products or services that undergo technological improvements and advanced scientific research that relate to the DNA technologies better known as the Genomic Revolution. In addition, industrial innovation in some areas such as manufacturing, automation, and energy has increased the demand for the shared technology, services, and infrastructure that make part of the Next Generation Internet (NGI) that ensures the financial services are more efficient (Andersson,2021).
Since 2014, ARK innovation began its operations by developing an EFT mainly centered on disruptive innovation. By 2019 the fund had two index funds grown to more than $2.3 billion by 2019)(‘’ARK INNOVATION ETF’’,2021). ARK's ETFs since inception has managed to outperform the broad-based equity market. For example, in 2018, the Asset under the management of the ETF that focused on disruptive innovation increased by 190% compared to the year 2017 (‘’ARK INNOVATION ETF’’,2021). According to NASDAQ, by Januar...