In the year between when Edelman first approached BlackRock with his fund idea and this week’s launch of the iShares Exponential Technologies ETF, Ark Investment Management in New York City last autumn launched a suite of four actively managed ETFs focused on cutting edge and potentially disruptive themes.
The ARK Industrial Innovation ETF (ARKQ) focuses on companies in the fields of robotics, autonomous vehicles, alternative energy, 3D printing and space exploration, among other industries. The fund has attracted $10 million in assets and has posted a barely break-even return since inception.
The ARK Web x.O ETF (ARKW) is composed of companies expected to benefit from the shift in technology infrastructure from hardware and software to the cloud, and involves the likes of cryptocurrencies, big data, services and data mining, and the so-called “Internet of Things. It has garnered $10 million in assets and is up about 8.5 percent since its launch.
The ARK Genomic Revolution Multi-Sector ETF (ARKG) focuses on products and services that rely on genomic sequencing, analysis, synthesis or instrumentation. The fund has $8 million in AUM and to date is the best performer in the group with a 12 percent rise during its short life.
The ARK Innovation ETF (ARKK) is a composite of the securities in the various industries found in the prior three funds. Its asset base of $6.2 million is the smallest of the bunch, and it’s up 2 percent since inception.
All four funds carry an expense ratio of 0.95 percent.
Of course, the ETF universe already has a variety of funds dedicated to sectors that are thoroughly plugged into the 21st century in such areas as the cloud, cleantech, early-stage biotech and cybersecurity.
With the launch of the four Ark funds late last year, along with the newly launched iShares Exponential Technologies ETF, investors now have greater access to companies and sectors that potentially can reshape business and redefine society.