This means that MOON is “focusing on multiple themes, as opposed to a narrow theme like cloud computing or genomics or video games,” said Todd Rosenbluth, director of ETF research for CFRA Research.
MOON’s largest sector allocation, biotech, makes up 17% of the fund, compared with ARKK’s biggest stake, a 22% allocation to internet companies. The top MOON holdings, laser-scanning company MicroVision Inc. and Vuzix Corp., an optical goods manufacturer, have advanced 231% and 145% respectively this year.
Other ARKK peers have also topped its year-to-date performance. Passively managed Global X Thematic Growth ETF (GXTG), has gained almost 16%. Actively managed competitors Fidelity New Millennium ETF (FMIL) and the BlackRock Future Innovators ETF (BFTR), with holdings like Penn National Gaming Inc. and Axon Enterprise Inc., have added 10% or more.
To date, none have proved much of a threat to ARKK, which has returned more than 200% in the past 12 months and helped spur a loyal following around Wood. Those already invested are unlikely to leave for greener pastures, according to Sal Bruno, chief investment officer at IndexIQ.
“There’s definitely a first-mover advantage to ETFs,” he said. “People get into them and they tend to stay in them as long as they are doing well.”
-With assistance from Vildana Hajric.
This article was provided by Bloomberg News.