5 Red-Hot ETFs To Gift Your Loved Ones

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Valentine’s Day is around the corner and while accessories, dresses, gadgets or flowers are the usual gifts being picked up for this day, gifting an ETF could also be a great idea. This is because the performance of ETFs is dependent on the movement of the stock market and their underlying holdings.

And the good news is that the major U.S. stock bourses are hitting a series of record highs this month on renewed optimism over speedy economic recovery from the pandemic-driven recession. Hopes of more fiscal relief package, signs of a healing labor market, continued progress in more vaccines, a rapid vaccination rollout and stronger-than-expected earnings bolstered investors’ confidence in the stock market and should keep the optimism alive.

Though almost every corner of the stock market is enjoying a rally, we have highlighted five ETFs that have been hot this year and could be a great gift for your loved ones. Let’s dig into the heart and soul of these ETFs:

ARK Innovation ETF (ARKK - Free Report)

This ETF has been the hottest of all, riding the wave of Tesla’s (TSLA - Free Report) crazy run and its innovative strategy. Innovation has been changing consumer habit and the economy. ARK defines ‘‘disruptive innovation’’ as the introduction of a technologically enabled new product or service that potentially changes the way the world works.

ARKK is an actively managed fund seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvements, and advancements in scientific research related to the areas of DNA technologies (Genomic Revolution), industrial innovation in energy, automation and manufacturing (Industrial Innovation), the increased use of shared technology, infrastructure and services (Next Generation Internet), and technologies that make financial services more efficient (Fintech Innovation). In total, the fund holds 55 securities in its basket and charges 75 bps in annual fees. The product has AUM of $24.9 billion and trades in an average daily volume of 6.2 million shares.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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