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Are Disruptive Technologies the Next Dot-com Bubble?

Should I be investing in disruptive technologies today?

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Are disruptive technologies the new and improved version of the 1990s dot-com stocks? The short answer is no, but there are certainly some similarities building.

ARK Innovation ETF (ARKK), an icon of thematic investing, is probably the highest-profile example of investing in disruptive technology. Even after sliding since its February highs, the stock remains almost double where it traded a year ago and triple from two years ago. Here, you can see how the returns of this single fund compare with the returns of the Morningstar U.S. Technology Index in the era of the dot-com bubble.

David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.