00:00Raul, let me start with you. ARK funds are cutting edge. People buy them because they want exposure to moonshots or potential moonshots.
00:08What's the, help me understand why you want to offer a watered down version of these funds?
00:14Yeah, great, great question and nice to be with everybody here today.
00:18So the principle that sort of what we've discovered over the years in marketing these products to our investors and speaking to investors is that there's different ways for different investors to want to express their exposure to innovation, right?
00:38No investor preference is the same. No investor appetite is the same.
00:42And so what we've been doing is listening to investors, listening to how different clients use our products and have tried to reverse engineer a solution that we think addresses some of the pain points, but also stays true to the underlying premise of being an innovation investor, right?
01:08If you're an innovation investor, you believe there's big upside in the future that you want to take advantage of.
01:15So one of the features of these products, of all four products that you will have seen that Eric described, is that you have this uncapped exposure to the upside.
01:24And that's that we feel is a is a compelling feature of the product, which makes it different as well to some of the things, some of the products that are out there.
01:32Kathy, when we first heard about this new lineup of ETFs, Eric Bakshinis, who, of course, is our senior analyst of ETF coverage here at Bloomberg, called it diet.
01:40And I love the way that he put that. And I think that that's something that you incorporated as well.
01:46Oh, my goodness. When we heard that, first of all, it was fun and funny.
01:51And and it was really Eric who looked at the filing. We hadn't named it, of course, diet, but he came up with the name.
02:00He said ARKK without the hot sauce. And so, yes, we're we're excited to offer this to investors who have been concerned about the volatility of innovation.
02:13Now, volatility on the upside is a very good thing. So if you think we're in a bull market, you might be very happy with ARKK.
02:22If you think, wow, we've had one big move since the tariff turmoil in April and our strategies have have had really good performance, you might you want to might want to step back and say, OK, maybe maybe there is something to what's going to happen in the next few years around innovation, given the policy dynamics here in the United States.
02:47But, gosh, it's done a lot of work already. I think I'll I'll take the lower volatility version.
02:53So, you know, we just want to increase access. We believe most people don't own our funds, period, and some don't own them because of volatility.
03:05Well, we're taking away one of the reasons, but we think everyone should have exposure to truly disruptive innovation, technologically enabled disruptive innovation, which has a very little overlap with traditional benchmarks like the QQQs.
03:24Yeah. And look, I mean, this diet concept obviously is popular. Buffers are popular with the S&P, the QQs, you name it. Right.
03:33They're they're putting diet on everything and it makes sense. Right. It's like selling soda.
03:36Raul, I just want to ask you, a lot of institutions make these as structured products, but here you are just basically democratizing it. Is that also what's going on here?
03:45That's a huge part of it. Yeah. I think, you know, this market has historically been monopolized, I would say, by a lot of the big banking giants.
03:55And I think the fact that these type of structures are now making their way into the ETF wrapper is great.
04:02You know, for a user, this is a one-stop shop. You get a structured exposure or defined exposure.
04:08Right. In our case, it's defined innovation as opposed to defined outcome.
04:14And you get that in an ETF wrapper with these, you know, rolling 12-month windows.
04:19And I think it becomes a really great access point, you know, for investors that are looking for these type of solutions.
04:27All right, guys, got to leave it there. Sorry. Up against the clock.
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