ARK Investment Management’s (ARK) suite of actively managed equity exchange traded funds (ETFs) has outperformed broad-based markets since their inception three years ago.
In addition, two of the four funds, the ARK Web x.0 ETF (ARKW) and the ARK Innovation ETF (ARKK), have delivered year to date returns of more than 70 per cent, according to Bloomberg.
“ARK believes true innovation is key to the long-term growth of company revenues and profits, and in many cases presents exponential growth opportunities,” says Catherine Wood, ARK’s Founder, CEO, and CIO. “Our incisive investment process and active management of high-conviction portfolios allow us to capitalise on rapid change, and to avoid industries and companies likely to be displaced by advances in technology.”
“Our research ecosystem is designed specifically to capitalise on rapid change through an open approach and the convergence of insights,” said Brett Winton, ARK’s Director of Research. “A combination of top-down and bottom-up research allows us to identify disruptive innovation early. We then size the opportunity of the innovation, and detect and rank companies best positioned to benefit.”
The ARK Industrial Innovation ETF (ARKQ) captures the rapidly converging industrial and technology sectors. ARKQ recognises that autonomous vehicles, robotics, 3D printing, and energy storage technologies are enhancing productivity and reducing costs, stimulating significant unit growth, which ultimately should transform the manufacturing landscape. As of 31 October, 2017, ARKQ has returned 52.6 per cent YTD and 18.4 per cent annualised since inception, outperforming the annualised returns of both the S&P 500 Index at 11.2 per cent and the MSCI World Net Index at 8.0 per cent.
The ARK Web x.0 ETF (ARKW) identifies next generation internet innovations like artificial intelligence, cloud computing, cryptocurrencies, and blockchain technology. ARKW also has outperformed, returning 72.1 per cent YTD and 29.2 per cent annualised since inception.
The ARK Genomic Revolution Multi-Sector ETF (ARKG) captures the convergence of technology and health care. ARKG has returned 52.2 per cent YTD and 8.9 per cent annualised since inception, continuing to rebound from the political campaign and post-election rhetoric around drug pricing.
The ARK Innovation ETF (ARKK) is built on the cornertstone investments across all of the firm’s innovation themes. ARKK has returned 76.7 per cent YTD and 21.8 per cent annualised since inception.
Since launching in 2014, ARK’s ETFs have grown to more than USD500 million, which includes The 3D Printing ETF (PRNT), launched in July of 2016. American Beacon Advisors, Inc is the exclusive US distribution arm for the ARK Invest suite of five ETFs.