This new competitor to the ARK Innovation ETF focuses on disruptive companies but aims to reduce volatility

Harbor Capital Advisors of Chicago, which manages $62 billion in active strategies, is switching gears, having opened six exchange traded funds since September. The goal is to mitigate the type of volatility that has been disconcerting to investors who have invested in high-beta funds such as the the ARK Innovation ETF.

During an interview, Kristof Gleich, Harbor’s chief investment officer, discussed an approach that makes use of sub-advisers to bring different approaches to building “high-conviction” portfolios managed by Gleich’s team at Harbor, while also reducing volatility and risk. Gleich focused on the Harbor Disruptive Innovation ETF INNO, -0.06%, which was established in December. The new ETF has only about $6 million in assets, but Harbor is running a total of $300 million under the same strategy, which also includes the Harbor Disruptive Innovation Fund HIMGX, +0.88%.

Cathie Wood, CIO at Ark Invest, has famously followed a strategy of taking highly concentrated positions in stocks of companies she believes are primed for explosive growth through innovation of technology or business processes. The strategy led to class-leading returns for the Ark Innovation ETF ARKK, -1.36% in 2020.

Here's the link to the complete article- https://www.marketwatch.com/story/this-new-competitor-to-the-ark-innovation-etf-focuses-on-disruptive-companies-but-aims-to-reduce-volatility-11646060945?mod=home-page