You may have been hearing a lot lately in social media outlets the growing influence of Ark Invest led by its founder Cathie (Cathy ?) Wood.
In this Article, we will take you trough the Ark Invest portfolio of Exchange Traded Funds (ETFs) and Answer the perennial question : Which Ark ETF is Best for you ?
Table of Contents
Which Ark ETF Is Best for You | What Is Ark Invest ?
Ark Invest is an American privately owned investment company.
It was funded by its current CEO and CIO Cathie Wood in 2014 with headquarters in New York city, USA.
Yeah, the first name Cathie and not Cathy as some of us may expect is is spelled right. That is short for Catherine.
As of the time of this article, Ark Invest total managed assets value at 50 Billion US Dollars.
Ark Invest Growing Popularity
To give you a sense of the recent influence of Ark invest, we pulled the Google Trends web search of the term Ark Invest.
As you can see of the picture above, the worldwide search interest search interest for Ark Invest has gone up over 300% in less than 3 months.
This is known as a breakout in Google search .
Something of this magnitude cannot happen unless there is a tremendous force behind it.
As a matter of fact, here are the Top 5 regions where this growth has manifested itself.
Values are calculated on a scale from 0 to 100, where 100 is the location with the most popularity as a fraction of total searches in that location, a value of 50 indicates a location which is half as popular. A value of 0 indicates a location where there was not enough data for this term.
|#2. HONG KONG||72|
|#3. SOUTH KOREA||50|
In case you may be wondering, the score for the USA is only 29.
What Makes Ark Invest Different and So Popular
The focus of Ark invest is on Everything Innovation. More precisely Disruptive Innovation.
What does that mean ?
Ark Invest will choose companies that challenge the current ways things are done.
Which means that they allow you to invest in solutions for the future.
When you understand that approach to investing, then you will not be surprised by Ark invest holdings in the different areas that impact the future of our lives.
This novel approach is further strengthened by a quest for Transparency in their way of doing business.
Which ARK Invest ETF IS Best For You ? | The Line Up
Ark Invest has five actively managed innovation ETFs.
Each one of them is comprised of companies picked by Ark’s management that represent the essence of that line of investment.
Here is the high Level view of these five ETFs.
The whole concept in investing in these innovative companies hinges on the fact that their growth potential is very strong .
Why you may Ask ?
Because they offer solutions to the future.
By investing in them today, you and I stands the chance to benefit from their colossal growth in the future.
Can You Invest in Ark Invest ?
Maybe you have already started investing in Ark Invest unknowingly.
If you have bought TSLA stock in recent years, Well Congratualtions.
TESLA (Ticker:TSLA) represent the flagship of disruptive innovation in the true essence of Ark Invest philosophy.
Over the last couple of years, Cathie Wood has told whomever wanted to listen that TSLA stock is poised to growth all the way to $4000, and this was before the split !
ARKK | ARK Innovative ETF
With its high exposure to innovation, this Ark Invest ETF provides very low exposure to traditional indices.
This means that the rest of the markets can be slumping or stagnant while these assets are growing.
Here are the Top Holdings of the ARKK Innovative ETF:
- TSLA | ROKU | CRISPR | SQ | TELADOC Health | INVITAE | ZILLOW | PURE STORAGE | PROTO LABS | SHOPIFY
Together, they account for almost 50% of the entire ETF.
Each one of the companies is currently going through a growth phase that has taken its stock to higher prices.
As such, the overall ARKK ETF has posted record gains over the last 12 months as depicted on its performance below.
From the ARKK fund Factsheet (provided above for Download), we can see that since its inception in 2015, it has consistently outperformed the broader S&P 500 market.
ARKQ | ARK Autonomous Technology and Robotics ETF
The sectors target by the ARKQ fund are Robotics, autonomous vehicles, energy storage, 3D printing and space exploration.
Therefore, it s is no surprise that TSLA stock is again the top holdings in this second ARK Invest actively managed Fund.
Remmeber how we mentioned the quest for transparency earlier ?
Well, these actively managed Funds regularly trade these assets on the open markets.
Ark Invest provides the general public (you an me) each day exactly what each fund it is buying or selling.
What does this mean ?
Well, you can create a portfolio on your own to mirror what these fund are doing and get similar results !
Here is our recent video on how to obtain the intraday trades from ARK Invest.
From the included Factsheet above, we can learn that since its inception, this fund has returned 25%.
This performance dwarfs the S&P500 13% return over the same period.
ARKW | ARK Next Generation Internet ETF
Internet technologies such as cloud computing, big data, digital media,
e-commerce, blockchain technologies, and the Internet of Things (IoT) are the main sectors for ARKW.
TSLA , Roku and Square are the top 3 holdings here.
Each one of this stock has greatly contributed to the recent 157% yearly performance of this ETF.
$10000 invested back in 2015 when this ETF started would have gotten you over $90000 in early 2021.
Further details are provided in the downloadable Factsheet below.
ARKG | ARK GENOMIC REVOLUTION ETF
ARK genomic Revolution ETF focuses on gene therapy bio-informatics, bio-inspired computing, molecular medicine, and pharmaceutical innovations.
The Top holdings of these ETF are:
- Pacific Biosciences of California
- Teladoc Health
- CRISPR Therapeutics
The ARKG fund Performance over the last year is 180% compared to 29.85% since its inception.
ARKF | ARK FINTECH INNOVATION ETF
The ARK Fintech Innovation ETF primarily targets fintech innovations including mobile payments, digital wallets, peer-to-peer lending,
blockchain technology, and risk transformation.
It is one of the newly introduced ETFS with an inception date of February 4, 2019.
Square Inc (Ticker: SQ) represents over 10% of the 2 Billion total asset in this fund.
Even in the very short term of it existence, this fund has returned over 108% over the last year as detailed in its Factsheet below.
CHOOSING The Best ARK INVEST ETF FOR YOU IN 2021
We went through the five ARK invest actively managed ETFS and learned that each one of them has had spectacular results over the last year.
In trying to answer the question which ark ETF is best , let’s summarize using some of the metrics in the table below.
The main takeaway is that the ARK Invest ETFs are setting record performance returns. over a short period of time.
Since they focus on growth supported by the disruptive innovations in cutting edge industries, one can really wonder if this is not the beginning of something much bigger that its founder Cathie Wood could have imagined.
|Fund Total Assets $||1 year Performance||Performance Since Inception||Top Holdings||Expense Ratio|
|ARKQ||$1.7 Billion||107%||25%||TSLA | MTLS | JD|BIDU||0.75%|
|ARKG||$7.7 Billion||180%||30%||PACB| TDOC|CRISPR||0.75%|
|ARKF||$1.96 Billion||108%||62%||SQ | MELI|Z||0.75%|
ARK Invest has some outstanding actively managed ETFs.
With the increasing influence of its founder Cathie Wood, one can only imagine how high these assets can further grow.
In selecting which Ark ETF is best for you, maybe the best approach is to focus on that are newly introduced as their general public adoption is still growing.
Bottom line is , one can barely go wrong with the types of returns witnessed across the lineup of ARK Invest managed ETFs.