 Hey, what's up you two? I'm Zeke and welcome to the Dream Green Show. This episode is brought to you by Weeble. Sign up now by clicking the link down in the description, deposit $100 and receive two free stocks valued up to $1400. In this video, we're going to talk about ETFs. In fact, we're going to talk about actively trading ETFs and we're going to talk about passively trading ETFs. Now one of the active trading ETFs has been doing pretty good that everybody keeps raving on about which is ARK, tickle symbol ARKK. So in this video, we're going to be talking about the difference in between a passively managed ETF and an actively managed ETF. But before we dive into the video, make sure that you guys hit the thumbs up on this video. It really helps out this channel more than you can even imagine. But enough talking, let's dive straight into the video. Welcome back all you dreamers. Let's just go ahead and dive straight into the difference in between the two and how they have been performing the last couple of years. So a passively managed ETF is the ones that everyone knows about like VOO and QQQ. Passively managed ETFs attempts to track the performance of a benchmark like VOO tracks the S&P 500 and QQQ tracks the NASDAQ. So when the NASDAQ and the S&P 500 are doing good, those ETFs follow those companies and when they go up, they go up and when they go down, they go down and then that's it. So it's just a benchmark of the S&P 500 and the NASDAQ. Now actively managed ETFs have the opportunity to outperform the benchmark through decisions of their portfolio managers and their research analysts. Now they do also have the opportunity to underperform the benchmark. So there's always the opportunity that these actively trading ETFs might not outperform the benchmark. So to break that all down in simple terms, VOO is a passively managed ETF. So they have to invest into companies that are inside the S&P 500. So they got to, no matter what happens, they got to invest into the companies that's inside the S&P 500 that allocate certain positions of their portfolio to all of the 500 companies inside of the S&P 500. They can't veer outside of the S&P 500. So if it's a great company out there doing really, really good, they can't invest into their company because it's not inside the S&P 500. So they're passively managed. I mean, whatever is inside the S&P 500, that's what they have to invest into. They don't have to do any type of thinking at all. Hey, we're buying shares of this because we always buy shares of this. Now actively traded ETFs are ETFs that they could buy and sell companies that might have a boom coming up, like Tesla. They could buy Tesla. Tesla is not inside the S&P 500. So VOO can invest into Tesla. But I actively traded ETFs, they can invest into Tesla, buy Tesla on the way up, sell it at the top. If a company is doing bad like Ford and Ford is inside the S&P 500, they could actually say, hey, we don't want Ford in our portfolio no more that we're going to sell all our shares of that and put that into Tesla or put that into Apple. So actively traded ETFs, they have market research analysis team members to do all the research to see what is going to boom in the next two or three years. They put money into that. They let it rise up and then they might sell it at the top, but they're not going to let one company send us out the portfolio that is doing really, really bad. They're just going to sell it, get rid of it and invest into the next thing that they think can have a great potential of making a lot of money in the future. So that's just the basics of it. Now the one that has been killing it on YouTube, on earth is ARK. ARKK is the actively traded ETF that has been outperforming both VOO and QQQ and many other benchmarks out there. ARKK has just been killing it. So let's pull up the charts right quick so I can show you guys exactly what I'm talking about and how ARK invests into their investments. And I'm going to show you what companies they're actually investing to currently at this time. Alright, here we are on ARK invest site and what sets ARK apart is really this last definition down here. ARK believe that its consistent investment process and active management of high conviction portfolios capitalize on rapid change and avoid industries and companies likely to be displaced by innovation. So they're not going to just sit back and let a company that's not performing well continue to stay inside that portfolio and then they're going to look for companies that have the potential to have a lot of upwards momentum in the future. They're going to invest inside those companies ahead of time. Alright, so if we take a look at what they are actually investing into, they have 32% of their portfolio in health care, 28% of their portfolio in technology and 16% is in communication. So that's the top three parts of their portfolio. Their top 10 holdings is Tesla, SquarePlace, NVTA, Roku, CRSP, 2U, Tree, ILMN, PRLB and Zillow. So this is these top 10 of their holdings account for 55% of their portfolio. And right now at the moment they have 42 holdings inside of their portfolio. Sometimes it can be 43, sometimes it can just be 40. But what they do, they actively manage their portfolio. They've seen Tesla was at a good still at around $300. They bought a lot of Tesla then. Of course, Tesla rose up to $2,000, had a stock split. And now I'm pretty sure they only look out for the next banging tech company. Tech is doing really good right now so that they can see some good buying opportunities for technology other than just always investing to the same companies over and over and over again. They're looking for the next big move. So we're looking at ARK compared to the benchmarks. Let's go over here. If we invested $10,000 in ARK back in December 31st, 2014, that is when ARK started their ETF. They have outperformed QQQ in VOO. If we invested $10,000 back in 2014, you'll have $30,000 in QQQ, $19,000 in VOO. And you will have over $50,000 in ARK. If you invested back in the same time, with these other three companies in 2014, you'll have $50,000. So we're looking at this chart. It's been outperforming VOO in QQQ since 2017. And it had a major boom because now they started to invest more in that portfolio to technology companies. So they have been making some good actively trades outperforming the benchmark of the S&P 500 and also that benchmark of the Nasdaq by making some great actively trades inside of their portfolio. So yeah, dreamers, I'm pretty sure that you guys have heard about ARK and was wondering exactly what was this ETF? Well, it's the actively traded ETF that is seeking to outperform both the benchmarks of the S&P 500 and Nasdaq every single year by actively managing their portfolio and their holdings, other than just passively, blindly investing into the same companies over and over and over again. It's nothing wrong with that. It's safe to invest it to VOO and QQQ because it casts a broad net over the 500 companies inside the S&P 500. But not all companies in the S&P 500 are doing well. They're for people investing to ARK because it's actively managed and they drop the companies that aren't doing so well and they invest that money into companies that might boom into the future. If you guys like the video, remember to hit the thumbs up button. It really helps out this channel a lot. Also, for you to not miss out on any future videos, make sure that you subscribe to my channel. So other than that, I'm Zeke bringing you The Dream Green Show and I'm out. Peace.