What is driving the surge in Kraken Robotics? Also, would you split monies for both stocks or what percentage should one allocate to each assuming i had 10k to invest? Lastly, this is a general question. How do the ETF providers buy so many stocks in an ETF and maintain a low fee structure? Much appreciate it.
PNG has mostly been moving higher amid a strong start to the year for defensive stocks. Defense spending and modernization programs are beginning to translate into recurring demand for PNGs products, and recent geopolitical events have also increased awareness for the industry. Recently, Trump proposed a $1.5T military budget for 2027, and this helped boost a lot of the defense names.
We have both PNG and ZDC in the growth model portfolio, and the weighting is higher towards PNG. While we cannot personalize responses, we would give PNG a slightly larger weighting than ZDC.
A rough overview of how ETFs purchase stocks and keep costs low is that instead of the ETF receiving cash and then buying 500 stocks, an Authorized Participant (AP) buys the exact basket of stocks in the index, delivers that basket in-kind (no fees) to the ETF, the ETF issues new ETF shares to the AP, and then the AP sells ETF shares on the market. As a result, there's no trading inside the ETF, no bid-ask spreads paid by the fund, and no capital gains are realized. APs essentially bear the cost of trading, but they do so because they use market making techniques like arbitrage, etc. to earn a profit on their trades.