ARK Invest to Launch Diet ETFs Aimed at Reducing Investor Losses

Akash Kumar

• July 9, 2025
• ⋅
• 3 min read

Cathie Wood’s ARK Invest is getting ready to launch a new type of exchange-traded fund (ETF) called “Diet ETFs.” These funds are meant to help investors lose less money in markets that are changing quickly. This new financial product will have built-in ways to protect against losses, and it will be a new option for the company, which is known for high-risk, high-reward growth strategies.

The change shows that ARK is moving toward products that are more sensitive to risk at a time when market volatility and uncertainty about the economy are making investors less confident. The Diet ETFs will let you invest in ARK’s thematic growth sectors like tech, AI, and crypto, but in a way that limits your risk and lowers the chance of big losses.

A New Phase in Defensive Growth Investing

ARK Invest says that these Diet ETFs are not about giving up on new ideas. Instead, they are set up to get the best risk-adjusted returns while still being able to invest in long-term disruptive themes. The mechanism might have limits on how much money can be made on the upside in exchange for built-in buffers that protect against losses over a certain amount. This trend is similar to the increasing popularity of defined outcome ETFs in traditional finance.

Cathie Wood got the idea from knowing how investors think when the market is down. A lot of small investors tend to sell at the worst possible time, which means they lose money and miss out on future gains. Diet ETFs are meant to stop this behavior by giving people a safety net that makes them want to hold on to their investments for a long time, even when things get rough.

Wood, who has gotten both praise and criticism for her bold investment calls, said in a recent interview that this line of products is a response to conservative investors who believe in ARK’s vision but want more protection when the market is down.

ARK Changes with the Market

This shift toward defensive innovation comes after ARK’s main funds lost a lot of money since the market peaked in 2021, mostly because they were heavily invested in high-growth and speculative assets. ARK seems to be expanding its appeal beyond risk-tolerant investors with the launch of Diet ETFs. They seem to be targeting a wider range of people who want to find a balance between innovation and keeping their money safe.

The Diet ETFs, which will come out later this year, could change the way both retail and institutional investors get into disruptive sectors without having to deal with a lot of volatility. ARK Invest is changing with the times, and the Diet ETF might be its best new idea yet.

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