ARK expands into Europe with Rize ETF acquisition

Sep 21st, 2023 | By | Category: ETF and Index News

ARK Invest has acquired London-based thematic ETF provider Rize ETF in a move that showcases the global expansion ambitions of the investment firm run by famed technology investor Cathie Wood.

Cathie Wood, CEO and CIO of ARK Invest.

Cathie Wood, Founder, CEO, and CIO of ARK Invest.

According to Wood, the acquisition will enable ARK to introduce its suite of actively managed innovation-focused ETFs, under the UCITS framework, to investors across Europe, the United Kingdom, and beyond.

ARK manages approximately $25 billion in ETFs and other products globally. Its flagship product in the US is the $8.0bn ARK Innovation ETF (ARKK US) which invests in companies from “transformational industries” across four themes: automation, robotics, and energy storage; artificial intelligence and next-generation internet; fintech; and DNA technologies and the genomic revolution.

ARK offers a further seven actively managed ETFs aligned with individual technology-related themes such as next-generation internet, genomic revolution, autonomous tech & robotics, fintech innovation, space exploration, 3D printing, and Israeli innovation.

Cathie Wood, Founder, CEO, and CIO of ARK Invest, commented: “Today’s acquisition advances ARK Invest’s commitment to offering high-quality thematic investment solutions to a global investor audience, particularly European investors who have not been able to access our products.

“We believe that the European ETF market presents a strong growth opportunity as new and younger investors continue to gain access to ETFs via the growth of digital platforms, and as active ETFs increase market share by meeting the demand for innovative investment exposures.”

ARK and Rize have also hailed the deal as facilitating the sustained growth of Rize ETF’s thematic and sustainable index ETFs in Europe and around the world.

As of the end of August, Rize managed over $450 million across 11 Dublin-domiciled UCITS ETFs that are distributed throughout Europe. The firm’s leading products in terms of AUM include the $170m Rize Sustainable Future of Food UCITS ETF (FOOD LN), the $120m Rize Cybersecurity and Data Privacy UCITS ETF (CYBR LN), and the $90m Rize Environmental Impact 100 UCITS ETF (LIFE LN).

In the coming period, the Rize ETF name and brand will gradually be retired to pave the way for “ARK Invest Europe”. Under the new ARK Invest Europe platform, existing Rize ETF index products will be distributed under the “ARK” prefix.

Rize’s founders, ETF industry veterans Stuart Forbes, Rahul Bhushan, Jason Kennard, and Anthony Martin will remain with ARK Invest Europe and will continue to develop new thematic products for European investors.

Rahul Bhushan, co-Founder of Rize ETF, said: “Over the past five years, we’ve carved out a niche in thematic and sustainable ETFs. Uniting with ARK, a frontrunner in disruptive innovation investing and research, we are poised to offer an augmented product line-up spanning three pivotal growth areas in European ETFs: thematics, sustainability, and actives. This collaboration not only facilitates a broader selection for our clients but also fosters a deeper engagement with research, steadfastly upholding our mutual dedication to sustainability.”

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