To The Moon! A Look Inside An ETF Focused On Companies At The Cutting Edge Of Innovation

Investing in the technologies of tomorrow can be a lucrative investment strategy. If investors can discern trends as they develop, they can stay ahead of the curve and reap the rewards. This is what made Cathie Wood and her firm ARK Invest famous. Her funds invest in companies she "expect[s] to be the leaders, enablers, and beneficiaries of disruptive innovation."

Wood's big bets have won her a lot of fans, but it hasn't always been a smooth ride. Investing in the cutting-edge means investing in what is largely unproven, and this strategy carries significant risk. The ARK Innovation ETF ARKK, for instance, is down close to 15% this year, largely due to her continued faith in Tesla TSLA whose stock has been hammered recently.

However, with risk comes reward. If a fund can smartly predict the trends of tomorrow, significant upside exists.

MOON

Direxion is an award-winning ETF issuer best known for its innovative leveraged and inverse single-stock funds. The company also provides its Direxion Moonshot Innovators ETF MOON with "exposure to the 50 most innovative U.S. companies at the forefront of changing our lives today, and tomorrow, by identifying the companies both pursuing innovation and having the potential to disrupt existing technologies and/or industries."

The fund tracks the performance of the S&P Kensho Moonshots Index and carries an expense ratio of .65%. The fund currently has assets under management of $21.4 million.

Top Holdings

1. AVIDITY BIOSCIENCES INC RNA – 7.31% of the fund.

RNA is a biotechnology company focused on developing RNA-based therapies. 

2. 4D MOLECULAR THERAPEUTICS IN FDMT – 4.37% of the fund.

FDMT is a clinical-stage biopharma company developing "genetic medicine." The company has a proprietary discovery platform called Therapeutic Vector Evolution.

3. COINBASE GLOBAL INC -CLASS A COIN – 3.91% of the fund.

COIN is the most popular cryptocurrency exchange in the United States. It is also another favorite of Cathie Wood and the second largest holding currently in ARKK.

4. ROBINHOOD MARKETS INC – A HOOD

HOOD is a technology company best known for its no-fee trading platform. 

5. ALLOGENE THERAPEUTICS INC ALLO – 3.38% of the fund.

ALLO is another clinical-stage biopharma company. It develops "investigational allogeneic chimeric antigen receptor T cell (AlloCAR T™)" therapies to fight cancer.

Featured photo by Pedro Lastra on Unsplash.