ARK Next Generation Internet ETF (ARKW)

Overview

The ARK Next Generation Internet ETF (ARKW) focuses on companies expected to benefit from the shift in infrastructure from traditional hardware and software to cloud, mobile, and social technologies, as well as increased use of shared technology, services and infrastructure, internet of things, big data, artificial intelligence, mobile commerce, digital media, and blockchain & P2P technologies. The ETF seeks long-term growth of capital.

Reputation and Reliability

ARK Investment Management is known for its focus on disruptive innovation and high-growth companies, but is also known for its high volatility. Cathy Wood, the founder, is a well-known figure in the investment world.

Management Expertise

The management team has expertise in identifying and investing in innovative companies across various sectors. Their expertise is focused on future trends and technologies.

Goal

Seeks long-term growth of capital by investing in companies that are expected to benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the next generation internet.

Investment Approach and Strategy

Strategy: Actively managed ETF that invests in companies involved in cloud computing, e-commerce, big data, artificial intelligence, mobile technology, digital media, blockchain, and the Internet of Things.

Composition Primarily invests in equity securities of domestic and foreign companies.

Market Share: Difficult to precisely define market share as ARKW covers a broad range of internet technologies. Estimates place its AUM as a relevant portion of ETFs focused on disruptive technologies.

Total Net Assets (AUM): 623000000

Key Competitors

• First Trust Cloud Computing ETF (SKYY)
• Global X FinTech ETF (FINX)
• ROBO Global Robotics and Automation Index ETF (ROBO)
• Invesco QQQ Trust (QQQ)

Competitive Landscape

The competitive landscape is broad, with numerous ETFs focusing on different aspects of technology and innovation. ARKW's advantage lies in its active management and concentrated portfolio, allowing it to potentially outperform passive indexes. Disadvantages include higher expense ratio and greater volatility compared to broad-based ETFs. ARKW is more concentrated in high-growth stocks than many of its competitors, leading to potentially greater rewards and greater risks.

Historical Performance: Historical performance is highly variable depending on the period observed due to the nature of growth stocks and market conditions, but has generally outperformed the market in the long term. Please refer to official sources such as Yahoo Finance and ARK Investment Management for official and updated financial performance data.

Benchmark Comparison: Performance is typically compared against broad market indices such as the NASDAQ Composite or S&P 500, but direct comparison is not perfect due to ARKW's specific investment focus.

Expense Ratio: 0.76

Average Trading Volume

The ETF typically exhibits a strong average trading volume, ensuring ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread is generally tight, indicating good liquidity and lower transaction costs.

Market Environment Factors

Economic indicators such as interest rates and inflation, sector growth prospects in areas like cloud computing and AI, and overall market sentiment all influence ARKW's performance.

Growth Trajectory

ARKW's growth is linked to adoption rates of next-generation technologies and the success of the companies it holds. Changes to strategy involve rebalancing based on conviction in individual company outlooks.

Competitive Edge

ARKW's competitive edge lies in its active management, concentrated portfolio of high-growth companies, and a focus on disruptive innovation. ARK's research capabilities and thematic investment approach aims to identify companies poised to benefit from technological advancements. Cathie Wood's name also creates a brand awareness advantage. The fund is a concentrated bet on future technologies.

Volatility

ARKW exhibits high volatility due to its concentration in growth stocks and emerging technologies.

Market Risk

Specific risks include technology obsolescence, competition from larger companies, regulatory hurdles, and macroeconomic factors affecting technology spending.

Ideal Investor Profile

Ideal for investors with a high risk tolerance who are seeking long-term growth potential and believe in the disruptive power of next-generation internet technologies.

Market Risk

More suited for long-term investors rather than active traders, but can be used for aggressive growth strategies.

ARKW is an actively managed ETF targeting companies expected to benefit from next-generation internet technologies, including cloud computing, e-commerce, AI, and blockchain. It offers a concentrated portfolio and potential for high growth, but comes with significant volatility. The fund's performance is highly dependent on the success of its chosen companies and broader market trends. Investors should have a high risk tolerance and a long-term investment horizon. Its actively managed nature provides both opportunity for outperformance and the risk of underperformance relative to benchmark indexes.

Data Sources:

• ARK Investment Management
• Yahoo Finance
• Bloomberg
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be made after consulting with a qualified financial advisor.