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NODE ETF Overview: Understanding the Onchain Economy

  NODE ETF Made Easy: A New Way to Invest in the Onchain Economy 1️⃣ What Is the NODE ETF? Visit official NODE ETF website for more information! The VanEck Onchain Economy ETF (NODE) is an actively managed ETF designed to seek long-term capital growth by investing in companies and financial instruments directly connected to the onchain economy. Unlike traditional equity ETFs that track a fixed index, NODE allows the portfolio manager to adjust holdings based on market conditions and changes within the digital asset ecosystem. NODE focuses on businesses related to blockchain infrastructure, digital asset services, and indirect digital asset exposure. Rather than holding bitcoin or a specific digital asset directly, the ETF provides investors with a way to participate in the broader growth of the onchain economy through related companies. *This post contains affiliate links. As an Amazon Associate I earn from qualifying purchases. ...
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ARKD ETF Explained: Buffered Exposure to ARKK with Lower Downside Risk

 

ARKD ETF Explained: Buffered Exposure to ARKK with Lower Downside Risk

ARKD ETF Explained: A Simpler Way to Invest in ARKK with Risk Controls

Visit official ARK INVEST website for more information!

1. What Is the ARK DIET Q1 Buffer ETF (ARKD)?

The ARK DIET Q1 Buffer ETF (ARKD) is a U.S.-listed exchange-traded fund designed to offer a more controlled way to invest in the performance of the ARK Innovation ETF (ARKK). Rather than fully tracking ARKK’s ups and downs, ARKD uses an options-based strategy to shape how gains and losses are experienced over a specific outcome period, typically one year. This structure is intended for investors who are interested in innovation-focused growth but want some protection against large declines. ARKD does not hold ARKK directly; instead, it references ARKK’s net asset value (NAV) and applies predefined participation rules to returns.

2. How ARKD Handles Downside Risk

Visit official ARK INVEST website to check ARKD's Holdings!

One of the key features of ARKD is its partial downside participation. If ARKK’s NAV declines during the outcome period, ARKD is designed to participate in only 50% of that decline. For example, if ARKK falls by 20%, ARKD would be expected to decline by approximately 10%, before fees and other factors. This does not eliminate losses, but it can reduce their magnitude compared to holding ARKK outright. This structure may appeal to investors who are concerned about volatility but still want exposure to disruptive innovation themes.


*This post contains affiliate links. As an Amazon Associate I earn from qualifying purchases.

3. Understanding the Hurdle Rate and Upside Participation

On the upside, ARKD does not immediately benefit from small gains in ARKK. The ETF has a 5% hurdle rate, meaning that if ARKK’s NAV increases between 0% and 5% over the outcome period, ARKD is expected to have little to no return. Once ARKK’s gains exceed this hurdle, ARKD participates in further upside at a rate of approximately 61.20%. This means that ARKD captures only a portion of strong positive performance, trading unlimited upside for defined risk characteristics. As a result, ARKD is not designed to outperform ARKK in strong bull markets.


*This post contains affiliate links. As an Amazon Associate I earn from qualifying purchases.

4. Fees, Structure, and Who ARKD May Be For

ARKD’s adviser has voluntarily agreed to waive a portion of its management fee related to investments in affiliated funds, and this arrangement is expected to remain in place for at least one year unless changed with board approval. While this fee structure may help reduce costs, investors should still understand that buffered ETFs are outcome-dependent and work best when held for the full outcome period. ARKD may be suitable for investors who want exposure to ARKK’s innovation theme but prefer a more structured risk-return profile. It is generally better viewed as a strategic allocation tool rather than a long-term buy-and-hold replacement for traditional equity ETFs.


*This post contains affiliate links. As an Amazon Associate I earn from qualifying purchases.


*The information in this article is provided for informational purposes only. All investment decisions and results are solely the responsibility of the investor.


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