Understanding Arkk Fees for Investors

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Arkk fees can add up quickly, especially for long-term investments. The management fee for Arkk's flagship fund is 1.25% of assets under management.

Investors should be aware that these fees are deducted from the fund's net asset value. This means that the net asset value will be lower than the gross asset value.

Arkk's management fee is relatively high compared to other actively managed funds. However, the fund's performance has been strong in recent years, which may justify the higher fee for some investors.

Arkk Fees and Performance

The fees associated with ARKK are worth understanding, especially when compared to similar funds. ARKK's expense ratio fee is 0.75%.

ARKK invests in a diverse range of companies, including Tesla, Roku, Square, and Spotify. These companies are industry leaders in their respective fields.

Some of the companies ARKK invests in include those that rely on new products or services, technological improvements, and advancements in scientific research. This includes companies in the areas of DNA technologies, industrial innovation, and fintech innovation.

Credit: youtube.com, ARK's Q1 2021 Performance - How They Really Did (+ what to expect next)

Other similar funds have an expense ratio fee of 1.07%. This means ARKK's fees are lower than other similar funds.

Here's a comparison of ARKK's fees with similar funds:

Overall, ARKK's fees are lower than other similar funds, making it an attractive option for investors.

Arkk Fees Overview

The fees associated with ARKK are lower than those of similar funds. In fact, the average expense ratio of similar funds is 1.07%, while ARKK's expense ratio is a more modest 0.75%.

This lower expense ratio is a significant advantage for investors, as it means they'll be paying less in fees over time. To put this into perspective, if you were to invest $10,000 in a similar fund with a 1.07% expense ratio, you'd be paying $107 per year in fees. In contrast, ARKK's 0.75% expense ratio would only cost you $75 per year in fees.

Here's a quick comparison of ARKK's fees with those of similar funds:

It's worth noting that ARKK's fees are still higher than those of passive index funds, which typically have much lower expense ratios. However, ARKK's unique investment strategy and focus on disruptive innovation may make its fees worth paying for some investors.

Arkk Investment Worth

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The Arkk investment minimum is $5,000, which is a relatively low barrier to entry compared to other investment options.

This low minimum investment requirement makes it accessible to a wide range of investors, including those who are just starting out with investing.

The Arkk investment fees can eat into your returns, but with a $5,000 minimum, you can get started without breaking the bank.

See what others are reading: Fee Only Wealth Management Firm

Is Arkk Worth It?

$ARKK has higher fees than passive index funds, but it's still priced lower than similar funds at 0.75%.

This fund invests in a very small number of companies, only 48 (as of February 3, 2020), which makes it easier to manually invest in those funds without the fee.

The top 10 funds make up 48.5% of the fund's value, which means most of the investment is concentrated in a few companies.

Investing in $ARKK can be high-risk, especially for retirement savings, as it's heavily weighted towards companies like Tesla, which can be volatile.

Its investment in Tesla was a major factor in the fund's success, increasing more than 600% in 2017 alone, but this trend may not continue.

If you're investing for retirement, keep in mind that $ARKK will be much higher risk and higher reward than most of your portfolio.

Recommended read: Types of Investment Fees

Cathie Wood's Flagship Fund Tops $300 Million

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Cathie Wood's Ark Investment Management has earned over $300 million in fees from its flagship exchange traded fund.

The fund, ARKK, has been around for nine years and has generated significant revenue for its manager.

Investors have continued to pour money into ARKK despite its significant losses, with the fund losing approximately $10 billion in investor capital.

Since the fund's valuation fell by over three quarters from its high in February 2021, Ark has earned more than 70% of its $310 million in fees.

The fund has been earning an average of almost $230,000 in fees every day this year as its value slowly recovers.

Investment fees have provided a very good living for ARK and Cathie Wood, while her investors haven't been so lucky.

Expand your knowledge: Is Arkk a Good Investment

Arkk Fee Changes

Arkk Invest dropped its management fee for its proposed spot bitcoin ETF from 0.25% to 0.21%. It also intends to implement a fee waiver for the first six months or $1 billion of fund assets.

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The fee change is part of a broader trend in the industry, as various fund issuers lower their planned spot bitcoin ETF fees.

Arkk's revised fee is now lower than Bitwise's planned fee of 0.20%, making it one of the cheapest spot bitcoin ETFs on the market.

Here's a brief comparison of the planned fees for some of the major players in the space:

Arkk's fee waiver for the first six months or $1 billion of fund assets is also worth noting, as it could provide some relief for investors in the short term.

Cassandra Bednar

Assigning Editor

Cassandra Bednar serves as an Assigning Editor, overseeing a diverse range of articles that delve into the intricate world of European banking. Her expertise spans cooperative banking, bankers associations, and various European trade associations. Cassandra has a keen interest in historical and contemporary financial institutions, particularly those established in the 1970s.

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