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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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What Is the ARKT ETF? A Simple Guide to ARK’s Q4 Buffer Strategy

 

What Is the ARKT ETF? A Simple Guide to ARK’s Q4 Buffer Strategy

ARKT ETF Explained: A Buffered Way to Invest in ARKK with Defined Risk

Visit official ARK INVEST website for more information!

1. What Is the ARK DIET Q4 Buffer ETF (ARKT)?

The ARK DIET Q4 Buffer ETF (ARKT) is a U.S.-listed exchange-traded fund designed to provide structured exposure to the ARK Innovation ETF (ARKK). Instead of fully following ARKK’s price movements, ARKT uses an options-based strategy to reshape how gains and losses are experienced over a defined outcome period, typically one year. This approach is intended for investors who want exposure to disruptive innovation themes while managing downside risk more carefully. ARKT references the net asset value (NAV) of ARKK and applies predefined participation rules to returns rather than directly holding ARKK shares.

2. How ARKT Limits Downside Risk

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

A key feature of ARKT is its partial downside participation. During the outcome period, ARKT is designed to absorb only 50% of any decline in ARKK’s NAV. For example, if ARKK declines by 10%, ARKT would be expected to decline by approximately 5%, before fees and other factors. This buffer does not eliminate losses entirely, but it can significantly reduce the impact of large market downturns. Because ARKK is known for volatility, this downside structure may appeal to investors who want innovation exposure without fully accepting ARKK’s drawdowns.


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

3. Hurdle Rate and Upside Participation Explained

ARKT also places limits on upside performance. The ETF has a 5% hurdle rate, meaning ARKT does not generate returns when ARKK’s NAV increases between 0% and 5% over the outcome period. Once ARKK’s return exceeds this threshold, ARKT participates in additional gains at a rate of approximately 63.15%. This structure allows ARKT to capture a portion of strong positive performance while giving up unlimited upside. As a result, ARKT is not designed to outperform ARKK in strong bull markets but instead aims to provide a more controlled risk-return profile.


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

4. Fees, Structure, and Investor Considerations

The investment adviser for ARKT has voluntarily agreed to waive a portion of its management fee related to investments in affiliated funds, and this fee waiver is expected to remain in place for at least one year unless changed with approval from the Board of Trustees. While this arrangement may help reduce overall costs, ARKT remains an outcome-oriented ETF, meaning results depend on holding the fund for the full outcome period. ARKT may be suitable for investors seeking exposure to ARKK’s innovation theme with defined risk parameters, and it is generally best viewed as a strategic or tactical allocation rather than a long-term 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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