ARK Invest unveils its first active thematic ETFs in Europe

Apr 19th, 2024 | By | Category: ETF and Index News

ARK Invest has brought its first actively managed ETFs to Europe with the introduction of three global equity funds targeting innovation, genomics, and artificial intelligence investment themes.

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

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

Listed on London Stock Exchange in US dollars and pound sterling, as well on Deutsche Bӧrse Xetra, Borsa Italiana, and Cboe Amsterdam in euros, the three funds are the ARK Innovation UCITS ETF (ARKK LN), ARK Genomic Revolution UCITS ETF (ARKG LN), and ARK Artificial Intelligence & Robotics UCITS ETF (ARKI LN).

Each ETF comes with an expense ratio of 0.75% and is classified as an Article 8 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

ARKK represents a UCITS-compliant version of Ark Invest’s flagship US-listed ETF – the $7.8 billion ARK Innovation ETF (ARKK US) – which offers exposure to a high-conviction portfolio of companies at the forefront of ‘disruptive innovation’. According to Ark Invest, this concept encompasses the introduction of technologically enabled new products and services that have the potential to fundamentally alter the way the world operates.

The ETF draws its constituents from a diverse array of sectors, with the investment strategy centered around four key sub-themes: automation, robotics, and energy storage; artificial intelligence and next-generation internet; fintech; and DNA technologies and the genomic revolution.

The selection of securities is driven by Ark Invest’s proprietary research spanning macroeconomics, industries, and individual companies, ensuring a thorough assessment of each company’s potential for innovation and impact on the market.

Cathie Wood, Founder, CEO, and CIO of ARK Invest, commented: “ARKK represents our best ideas, drawing from a decade-long track record to target companies at the forefront of disruptive innovation. It is engineered to benefit from an impending economic transformation that we believe will surpass the historical milestones of the first and second industrial revolutions.”

ARKG, meanwhile, also follows a strategy that is available in the US, namely through the $1.6bn ARK Genomic Revolution ETF (ARKG US). Spanning across various sectors such as healthcare, information technology, materials, energy, and consumer discretionary, the strategy hones in on companies poised to capitalize on advancements in DNA sequencing, gene editing, targeted therapeutics, bioinformatics, and agricultural biology. The portfolio is expected to consist of between 40 and 60 holdings with security selection also underpinned by Ark Invest’s proprietary research.

ARKI introduces a strategy uniquely designed for the European market that capitalizes on emerging investment opportunities within the AI and Robotics sectors. This ETF is comprised of companies poised to engage with and derive advantages from the development of new products and services, technological enhancements, and scientific progress in fields such as artificial intelligence, automation, advanced manufacturing, transportation, energy, and materials.

Commenting on the ethos behind the three UCITS ETFs, Cathie Wood added: “Our mission is to empower investors to capitalize on the most promising innovation of our age. The convergence of disruptive technologies across sectors is accelerating at an unprecedented pace, and we believe it presents one of the most exciting investment opportunities right now.”

Ark Invest revealed its plans to expand into the European market in September last year after acquiring Rize ETF, a London-based provider of passively managed thematic ETFs. The current ‘Rize’ portfolio consists of seven ETFs offering index-based exposure to a diverse array of sustainable and technology-oriented themes. These include the circular economy, cybersecurity and data privacy, digital payments, environmental impact, sustainable infrastructure, and the future of food.

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