ARK Fintech Innovation ETF (ARKF US) – Portfolio Construction Methodology

The investment approach governing the actively managed ARK Fintech Innovation ETF concentrates on long-term growth by owning domestic and foreign equities engaged in financial-technology innovation, defined as technology-enabled products or services that can change how the financial sector operates. Using top-down thematic research and bottom-up valuation, fundamental, and quantitative work—with ESG factors integrated but not used for exclusions—the manager builds a conviction-weighted, non-diversified portfolio (typically ~40–55 names) across market-cap tiers, often concentrated in communication, technology, and financials. Eligibility centers on companies deriving significant revenue/market value from, or whose primary business is, areas such as digital payments, point-of-sale systems, e-commerce enablement, transactional innovation, analytics, fraud reduction, P2P lending, blockchain, mobile wallets, and insurance risk-pricing platforms; ADRs and non-U.S. listings are permitted. Position sizing reflects conviction and liquidity; rebalancing and trims/adds occur as valuations, liquidity, and thesis strength change. The fund may gain indirect crypto exposure (e.g., via pooled vehicles) through a Cayman subsidiary (≤25% of assets) while managing tax, liquidity, and capacity.

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