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https://morningstar.com/articles/1006586/3-funds-for-an-evolving-marketIs the market overvaluing growth, undervaluing innovation, or getting things right?
When in doubt, it's almost always a good idea to stick to a broad market portfolio, like Vanguard Total Stock Market ETF (VTI)
If the market is overpaying for growth, a fundamentally weighted fund, like Schwab Fundamental U.S. Broad Market ETF (FNDB) (0.25% expense ratio), should profit from it.
While it is unlikely the market is undervaluing a large swath of growth stocks at their current valuations, it is possible that it still doesn't fully appreciate the magnitude of changes in the economy and business....Their value relies heavily on changes in the future, where small differences in execution and consumer behavior (like delays and slight differences in adoption rates) can have a big impact on their growth trajectories....Those looking to hedge against this risk might consider a fund like ARK Innovation ETF (ARKK) (0.75% expense ratio).
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