UK Investors seek alternatives to Scottish Mortgage and ARKK ETFs (Sponsored content from Hafiz Ajmal)
UK investors are looking to alternatives to Scottish Mortgage and ARKK ETFs, as the two funds have underperformed in recent months. The Scottish Mortgage Investment Trust (SMT) is down 30% in the past year, while the ARK Innovation ETF (ARKK) is down 50%.
According to this article by Invezz.com, CFD traders and investors trading the markets are “concerned about the high valuations” of both funds, as well as “their exposure” to risky assets. SMT has a large weighting to technology stocks, while ARKK invests in a variety of disruptive technologies.
“Investors are looking for more diversified and less risky alternatives to SMT and ARKK,” said James Butterfill, head of research at ETF provider ETFMG. “There are a number of good UK-based ETFs that offer exposure to the UK stock market without the high valuations and risk of SMT and ARKK.”
One such ETF is the iShares Core FTSE 100 ETF (ISF), which tracks the performance of the FTSE 100 index. The FTSE 100 is a broad index of the largest 100 companies listed on the London Stock Exchange. It is a more diversified and less risky investment than SMT or ARKK.
Another alternative is the Vanguard FTSE All-Share ETF (VUSA), which tracks the performance of the FTSE All-Share index. The FTSE All-Share is a more comprehensive index of the UK stock market, and it also has a lower expense ratio than ISF.
UK investors are looking for alternatives to Scottish Mortgage and ARKK ETFs, as the two funds have underperformed in recent months; reminiscent of the Truss market crash. There are a number of good UK-based ETFs that offer exposure to the UK stock market without the high valuations and risk of SMT and ARKK.
