
ARKW is an exchange-traded fund (ETF) that tracks the performance of the ARK Innovation ETF (ARKK).
It's designed for investors who want to gain exposure to the ARK Investment Management's equity strategy.
The ARK Investment Management team, led by Cathie Wood, focuses on investing in innovative companies.
The fund holds a diverse portfolio of stocks, with a focus on disruptive technologies like artificial intelligence, blockchain, and renewable energy.
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What is NYSEARCA: ARKW
NYSEARCA: ARKW is an exchange-traded fund (ETF) that tracks the performance of the Innovation ETF, which is designed to provide exposure to a basket of stocks that are leaders in innovation and disruption.
The Innovation ETF is built using a rules-based methodology that selects stocks based on their ability to drive innovation and disruption across various industries.
ARKW is a popular choice among investors seeking to tap into the growth potential of innovative companies.
The fund has a net expense ratio of 0.75%, which is relatively low compared to other ETFs in the market.
It has over $12 billion in assets under management, making it a significant player in the ETF space.
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ARKW Performance
Over the past 5 trading days, ARK Next Generation Internet ETF has overperformed the S&P 500 by 1.28%, a strong indication of its relative strength compared to the major market average.
The fund's impressive performance is evident in its year-to-date growth, with ARKW up 124% - an advantage of roughly 80% over the Dow Jones Internet Composite Index.
ARKW's active management allows it to deviate from traditional interpretations of what makes an internet ETF, resulting in a more leveraged exposure to true disruptors.
Tesla is ARKW's largest holding, accounting for nearly 10% of the fund's weight, and it also features exposure to bitcoin, fintech equities, and videogame makers.
The fund's streaming entertainment exposure is a key example of its focus on true disruptors, with the internet itself being a highly disruptive force.
Here's a quick summary of ARKW's performance metrics:
- Overperformed S&P 500 by 1.28% over the past 5 trading days
- Year-to-date growth of 124%
- Advantage of roughly 80% over the Dow Jones Internet Composite Index
ARKW and Bitcoin
ARKW is highly volatile, with significant exposure to Tesla and Bitcoin.
The cryptocurrency market has long been characterised by its volatility, making Bitcoin a high-reward and high-risk asset.
A 29% return due to high valuations and technical downside risks led to a rating downgrade from buy to hold for ARKW.
The cryptocurrency market's volatility directly affects ARKW's performance, making it a challenging investment.
ARKW's exposure to Tesla and Bitcoin is a significant factor in its volatility, as these assets are known for their price fluctuations.
Take a look at this: Arkw Price
ARKW Investment Opportunities
ARKW has overperformed the S&P 500 by 1.28% over the past 5 trading days, suggesting its relative strength is strong at this time.
The ARK Next Generation Internet ETF (ARKW) has a 0.76% expense ratio, making it a cost-effective option for investors.
This ETF is actively managed, giving it the flexibility to hold assets that typically don't reside in traditional, passive internet funds, such as Tesla, bitcoin, fintech equities, and videogame makers.
Here are the top 5 funds managed by ARK Invest:
Fonds
ARK Invest manages a range of exchange-traded funds (ETFs) that cater to various investment interests.
The company's flagship fund, ARKK, was created in 2014 and is listed on the NYSE Arca under the ticker ARKK. It's an actively managed fund that focuses on innovative companies.
ARK Invest also offers a range of thematic ETFs, including ARKW, which targets the next generation of internet companies. This fund was launched in 2014, the same year as ARKK.
Another notable fund is ARKG, which focuses on the genetic revolution. This fund is listed on the CBOE under the ticker ARKG and is also actively managed.
If you're interested in autonomous technology and robotics, ARKQ is the fund for you. It's an actively managed fund that was launched in 2014.
For fintech innovation, ARKF is the way to go. This fund was created in 2019 and is listed on the NYSE Arca under the ticker ARKF.
If you're looking for a more recent addition to ARK Invest's lineup, ARKX is the fund for space exploration and innovation. This fund was launched in 2021 and is listed on the CBOE under the ticker ARKX.
ARK Invest also offers two index-based ETFs. The 3D printing ETF, PRNT, was launched in 2016 and offers exposure to this innovative industry. The Israel innovative technologies ETF, IZRL, was launched in 2017 and provides access to the Israeli tech sector.
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Here's a summary of ARK Invest's funds:
Risques
Investing in ARKW can be a high-risk, high-reward proposition. The fund's high volatility is a major concern, with a 24% drop in 2021.
ARKW's significant exposure to Tesla and Bitcoin is a double-edged sword. These two stocks have been strong, but a correction is ongoing.
Investors seeking unusually high returns may be disappointed, as "hot" funds and thematic ETFs often struggle to maintain their performance.
Arkw vs. S&P 500
In the past 5 trading days, ARK Next Generation Internet ETF has overperformed the S&P 500 by 1.28%, which is a strong indication of its relative strength.
This outperformance suggests that ARKW is a good choice for investors looking to diversify their portfolios or capitalize on emerging trends in the tech industry.
Over the same period, ARK Next Generation Internet ETF has demonstrated its ability to outdo the major market average, showcasing its potential for long-term growth.
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Here's a brief comparison of ARK Next Generation Internet ETF's performance with the S&P 500 over the past 5 trading days:
This data highlights the ETF's strong performance and suggests that it may be a good addition to a diversified investment portfolio.
Protected Bitcoin ETFs
Protected Bitcoin ETFs offer a potential game-changer for crypto markets by mitigating the volatility of Bitcoin investments.
These funds are designed to provide investors with a more stable way to gain exposure to Bitcoin, which has long been characterized by its high-risk and high-reward nature.
The first spot Bitcoin ETFs have seen a remarkable first year, attracting over $36 billion in net inflows during their first year of trading.
Protected Bitcoin ETFs could make it easier for investors to get into the cryptocurrency market, which has traditionally been a daunting space for many.
The cryptocurrency market has been marked by intense volatility, making it difficult for investors to navigate.
In their first year of trading, spot Bitcoin ETFs have seen billions of dollars flow into them, making it easier for investors to invest in Bitcoin.
These funds offer a more regulated and accessible way to invest in Bitcoin, which could lead to a wider adoption of the cryptocurrency.
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Share Buyback
The ARKW investment opportunity includes a clear stance on share buybacks. ARKW does not have a share repurchase program in place at this time.
Share buybacks can have a significant impact on a company's share price and earnings per share. A buyback program can usually result in a higher earnings per share when the share count drops.
It's worth noting that not having a buyback program can be a deliberate choice by the company. This decision might be based on various factors, including the company's growth strategy and financial priorities.
If you're considering investing in ARKW, it's essential to understand the implications of their current share buyback policy.
Ark Next Generation Internet ETF
The Ark Next Generation Internet ETF, or ARKW, is a top performer in the market. Over the past 5 trading days, ARKW has overperformed the S&P 500 by 1.28%, making it a strong choice for investors.
One of the key reasons for ARKW's success is its actively managed approach, which allows it to deviate from traditional interpretations of what makes an internet ETF. This means it can include assets like Tesla, which is its largest holding at a weight of nearly 10%.
ARKW's roster is also more levered to true disruptors than competing strategies. For example, it features exposure to bitcoin, fintech equities, and videogame makers – assets that typically don't reside in traditional, passive internet funds.
The fund's streaming entertainment exposure is just one example of this trend. As analyst Nicholas Grous noted, "Offering thousands of channels for a seemingly low price, linear TV has not kept up with the times. Modern viewers want modern options."
The expense ratio of ARKW is 0.76%, which is a relatively low cost for an actively managed fund. This means investors can keep more of their returns, rather than paying high fees to manage their investments.
Here are some key stats about ARKW's performance:
- Up 124% year-to-date, outperforming the Dow Jones Internet Composite Index by about 80%
- Largest holding: Tesla (NASDAQ:TSLA) at a weight of nearly 10%
- Expense ratio: 0.76%
Frequently Asked Questions
What is the difference between arkk and ARKW?
The key differences between ARKK and ARKW are their sector exposures and expense ratios, with ARKK being less expensive and having a different sector allocation. Understanding these distinctions can help investors choose the right fund for their investment goals.
Sources
- https://fr.wikipedia.org/wiki/Ark_Invest
- https://financhill.com/stocks/nysearca/arkw
- https://investorplace.com/2020/11/5-2020s-best-etfs-to-buy-aces-arkw-arkg-chiq-nerd/
- https://stockanalysis.com/etf/arkw/
- https://www.moomoo.com/hans/news/post/18028282/1520-shares-in-ark-next-generation-internation-etf-nysearca-arkw
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