Here's an Active Tech ETF That I Actually Like More Than ARKK

"Nothing against the Ark Innovation ETF ( ARKK), which is having a glorious year, now up more than 35% year to date and over 78% in the last two years. Undoubtedly, this current environment has been very kind to the disruptive innovators, including those that aren't yet making a big profit. While there have been subtle cracks in the growth trade in recent weeks, with the Nasdaq 100 slipping a bit off its high,"

"As Cathie Wood of Ark Invest makes the most of the recent pullback by adding to positions in some of her favorite names, I do think that shares of the Ark Innovation ETF could be a smart buy at around $76 per share, a level where I see some pretty robust support. That said, there is one active tech ETF that I think might also be worth careful consideration on the way down."

"Though the Ark Innovation ETF does stand out as "growthier," with more explosive upside potential, the shares are also more volatile, with a beta of 2.41, which suggests a much more turbulent ride than the S&P, especially when the market encounters a bit of a growth scare. Whether it's too soon to be a buyer for such a hot innovation ETF remains up for debate."

ARKK has gained over 35% year-to-date and more than 78% over two years, reflecting a favorable environment for disruptive innovators, including unprofitable firms. Recent weeks showed subtle cracks in the growth trade and a Nasdaq 100 pullback, yet the growth and disruptive innovation themes remain attractive for the next two to three years. ARKK was roughly 17% below recent highs, with a potential support level near $76. Cathie Wood increased positions during the pullback. ARKK exhibits high volatility (beta 2.41) versus the S&P. The Goldman Sachs Future Tech Leaders ETF presents a lower-volatility alternative for exposure to future tech.

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