Disruptive Innovation: trend-following strategy vs buy & hold
Equities · tracked with ARK Innovation ETF (ARKK)
ARKK is an actively managed fund investing in companies it considers disruptive — genomics, fintech, automation, AI and digital platforms.
Growth of 100 since 2014
buy & hold · total returnBuy & hold total return of ARK Innovation ETF (ARKK). The Strategy Alpha results and live signal for Disruptive Innovation are part of Plus.
What drives Disruptive Innovation
Speculative growth stocks are extremely sensitive to interest rates and risk appetite.
How a trend-following strategy handles Disruptive Innovation
ARKK rose several-fold in 2020 and then lost about 80% by 2022. Few charts show more clearly why buying popular themes after a big run — and holding through the collapse — is costly.
Our Strategy Alpha applies the same simple, rules-based trend filter to every market: invested while the trend is up, in Treasury bills while it is down, checked once a month. It is not a forecast — it is a discipline that aims to keep most of the long climbs and sit out the deepest drawdowns.
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Educational content, not investment advice. Backtested results are hypothetical and do not guarantee future results. Disclaimer.