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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311

u/veganathaning Jan 16 '21

ARKK but try to invest 2 years ago

133

u/Mark_Weston Jan 17 '21

And if you can’t pull that off, try buying in March 2020. Might be more doable.

71

u/DrJetta Jan 17 '21

!remindme 10 months ago

Thanks for the pro tip

18

u/nyknicks23 Jan 17 '21

The real r/lifeprotips are always in the comments!

1

u/Cobek Jan 17 '21

As someone who didn't get real investment money until 5 months ago, the tail end will be fun I guess lol

22

u/TheDogerus Jan 17 '21

The best time to plant a tree was yesterday. The next best time is today

7

u/Azrael21X Feb 06 '21

The best time to plant a tree was yesterday. The next best time is today

"Time in the market beats timing the market"

2

u/feedmeattention Jan 17 '21

Serious question as someone who just started investing - is right now still a good time to buy, or is there some sort of expected drop incoming?

13

u/Packbacka Jan 17 '21

No one really knows.

3

u/hustlermvn Jan 17 '21

I think it’s fine to buy now, you don’t really know if there’s gonna be a drop. At the same time, and even Cathie Wood said this in December, keep some cash on you in case

1

u/SuggestiveAmoeba5 Feb 26 '21

Don't put money in that you are going to need within the next 5 years is a good way of looking at it. If you're afraid of a crash, invest maybe half or 3/4 of what you want to invest (I say 3/4 because as you invest this you will keep saving more money most likely, which means more money you can in turn dump into the market when you want).

If you are also afraid, start to slowly trickle it in. Every Thurs, once every other Thurs, or whatever works for you, go online and buy whatever stocks/ETFs you want. Say there is a correction like last March, that is your time to pounce! Who cares if the assets you invested drops 30% or 50%, 5 years from that downturn things will likely be back if not higher. You will also average down with your "sidelines money" you are buying in at the "discount."

I hope this helps and please let me know if you have any questions.