Cathie Wood’s ARK Funds: ETFs Worth Putting On Your Watch List
Exchange traded funds (ETFs) led by Cathie Wood, CEO and chief investment officer of ARK Investment Management, have been in the spotlight thanks to their stellar performance over the past year. The company currently has five actively-managed funds and two index funds. They each focus on a theme that is likely to be part of the growth story in equities in the new decade.
We recently covered several of those funds, including:
- ARK Autonomous Technology & Robotics ETF (NYSE:ARKQ) — up 165% in 12 months and up 8% year-to-date (YTD) (covered here);
- ARK Fintech Innovation ETF (NYSE:ARKF) — up 161% in 12 months and up 3% YTD (covered here);
- ARK Genomic Revolution ETF (NYSE:ARKG) — up 193% in 12 months but down 6% YTD (covered here);
- ARK Innovation ETF (NYSE:ARKK) — up 183% in 12 months but down 4% YTD (covered here);
- ARK Israel Innovative Technology ETF (NYSE:IZRL) — up 88% in 12 months and up 7% YTD (covered here).
Upon closer inspection, it’s clear that these funds have come under pressure in recent days, potentially offering interested buy-and-hold investors better entry points. We believe many of the names held in these five funds are likely to see new highs in the coming quarters.
However, as we approach another earnings season, many darlings of Wall Street will be volatile. Therefore, there could be further profit-taking in these names.
Today, we’ll discuss the remaining two funds in the group we haven’t yet covered.
1. ARK Next Generation Internet ETF
- Current Price: $142.59
- 52-Week Range: $47.59 – $191.13
- Expense Ratio: 0.79% per year
The ARK Next Generation Internet ETF (NYSE:ARKW), an actively-managed fund, invests in global companies that are expected to lead the next generation on the Internet. These potentially innovative and disruptive names focus on artificial intelligence (AI), the Internet of Things (IoT), transformation into the cloud, big data analytics, blockchain, cryptocurrencies, e-commerce and social platforms.
ARKW, which currently invests in 52 companies, started trading in September 2014. The top 10 names comprise more than 40% of net assets of almost $5.3 billion.
Since the start of 2021, ARKW has returned about 1%. However, over the past 12 months, it is up 185% and hit a record high in mid-February. For those readers who also pay attention to technical charts, a fall toward the $135 level is possible in the coming weeks. Yet, any such decline would improve the margin of safety for long-term investors.
The past year has shown that disruptive technological changes are unfolding fast in our daily lives, and the fund is likely to capture the growth in a diverse range of names that could continue to be part of that revolution.