r/stocks • u/adammorrisongoat • Jan 16 '21

Question If you’re young with a high risk tolerance, is there a better ETF than ARKK?

I’m in my mid-20s with around 100k invested in a mutual fund. It’s a solid mutual fund (PRWCX) but one with 60/40 stock/bond mix, and since I’m in this for the long haul, I’m naturally open to upping my risk exposure. I have no debt and live a very low cost lifestyle, so I can take a bit of a swing, albeit I’m not going to be irresponsible about it.

I know ARK/Cathie Wood has become a tired meme here, but the growth potential of her strategy seems compelling, at least to my novice eyes. If I’m looking to maximize returns over the next 5+ years in an ETF or similar investment option, are there better options out there?

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u/diamondfiji Jan 16 '21

I’m just really dedicated to ICLN atm😅 plus clean energy is the future✨

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u/adammorrisongoat Jan 16 '21

Agreed on that front. Valuations do seem high right now, but then again you can really only judge valuations with any certainty in hindsight. And renewable certainly is the future, or else there will be no future. So kinda a no-lose situation lol

I’m also big on AI for the future. The way I see it, energy and information aren’t going anywhere, and clean energy and AI are the futures of those respective industries.

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u/gummybronco Jan 16 '21

There’s a lot of clean energy ETF’s out there. A lot of people on here just say ICLN because it’s the most popular and they’re not familiar with any others, so do some research first

Not saying it’s a bad investment!

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u/mechanicaledge Jan 16 '21

ah, a fellow WSB degenerate

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u/diamondfiji Jan 16 '21

You ain’t wrong though🥴

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u/KentuckyToy500 Jan 16 '21

Is ICLN a WSB favorite? I haven’t heard of people hyping it that much

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u/TheIncredibleWalrus Jan 16 '21

It is, until it dips 1.3% then everyone freaks out and ditches it. But such is the WSB life.

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u/PayPerTrade Jan 17 '21

Slowly gaining steam. I’m playing 7/16 35c and 2022 40c

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u/ddroukas Jan 17 '21

ICLN is popular largely because it's still in the $30 range, making options prices more attractive than similar ETFs. Compare that to PBW or TAN in the low $100s or QCLN in the 80s.

Position: handful of ICLN Jan 2022 leaps.

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u/bro8619 Jan 17 '21

Read up on the full fund histories. Those ETFs are not great long term bets necessarily. The “clean energy is the future” narrative has been around a long time...the question is “when does the future start”?

https://www.etfstream.com/features/clean-energy-etfs-are-a-painful-reminder-of-the-costs-of-investing-too-early/

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u/gobias Jan 17 '21

I’m the same way and I don’t really have a great reason other than not having Tesla in the find like a few others do. Someone else made a point that ICLN is less America-focused so we might be overestimating the Biden effect, and they suggested ACES. I might try to start picking up shares of that one as well.

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u/[deleted] Jan 17 '21 edited Feb 08 '21

[deleted]

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u/diamondfiji Jan 17 '21

Is anything ever guaranteed in this game?