💡Illuminating the Path to Growth with ARKW ETF

Hello ETF UNO readers! Today, we're excited to set our sights on a thrilling area of the investment universe: the world of next-generation internet investing with the ARK Next Generation Internet ETF (ARKW). This innovative ETF focuses on companies at the forefront of emerging technologies shaping our digital future.

What is ARKW?

The ARKW ETF, an active fund managed by ARK Investment Management since its launch in 2014, seeks to invest in companies developing or benefiting from cutting-edge internet technologies. ARKW aims to expose investors to potential growth and disruption in the internet sector by focusing on these innovative firms. This ETF doesn't spread its bets across hundreds of companies; instead, it focuses on a concentrated portfolio of what Ark Invest considers the tech industry's most disruptive and revolutionary players.

⚡Innovation Everywhere You Look: Key Areas of Focus

The ARKW ETF isn’t just about a single trend, it actually dives headfirst into six key innovative areas:

• Cloud Computing & Cyber Security: Companies that provide secure and scalable computing power and protection against online threats.

• E-Commerce: Businesses that are revolutionizing online shopping, making it faster, easier, and more personalized.

• Big Data & Artificial Intelligence (AI): Companies leveraging vast amounts of data and AI to drive insights and automation.

• Mobile Technology and the Internet of Things (IoT): Companies developing the next generation of mobile devices and connecting everyday objects to the internet, creating a truly interconnected world.

• Social Platforms: Platforms building the online communities where we connect, share, and express ourselves.

• Blockchain & P2P: Companies pushing the boundaries of decentralization and secure transactions through blockchain technology and peer-to-peer networks.

ARKW’s Top Holdings

Some of the top holdings in the ARKW ETF include well-known names like Tesla (TSLA), Coinbase (COIN), Zoom (ZM) and Meta (META), as well as some hidden gems which are less widely known by the investors. Here are a few exciting examples:

• Unity Software (U): A leading game engine development company powering many popular video games and potentially shaping the metaverse's future.

• Roku (ROKU): A pioneer in streaming device technology, offering access to a wide variety of streaming content.

• Roblox Corporation (RBLX): An innovative gaming company that allows users to create, share, and play games in a vast virtual universe.

• UIPATH (PATH): A leader in Robotic Process Automation (RPA) that provides a platform for building, deploying, and managing software robots to automate repetitive tasks for businesses.

The ARKW ETF's largest holding is currently the ARK 21Shares Bitcoin ETF, a spot Bitcoin ETF that provides investors with direct exposure to the world's leading cryptocurrency. This ETF allows investors to gain exposure to Bitcoin without buying, storing, or managing the digital asset directly.

In addition to the Bitcoin ETF, ARKW's largest individual company holding is Coinbase, a leading cryptocurrency exchange platform. Coinbase enables users to buy, sell, and store various cryptocurrencies, making it a key player in the blockchain and digital asset space.

Together, approximately 20% of ARKW's total portfolio exposure is allocated to the blockchain and cryptocurrency industry. This significant allocation aligns with the views of ARK Investment Management's CEO and Chief Investment Officer, Cathie Wood.

Cathie Wood has been a vocal advocate for the future of cryptocurrencies, particularly Bitcoin. She believes that digital assets and blockchain technology have the potential to revolutionise the financial industry and beyond.

ARKW at a glance

ETF Issuer: ARK Invest

Inception: 30/09/2014

Asset Class: Equity

Underlying Index: Actively Managed

Geographical Focus: Global, but mostly in U.S.

Expense Ratio: 0.88% (as of last data point)

Dividend Yield: 0% 🤔 (as of last data point) ARKW prioritises future growth by reinvesting profits rather than offering dividends, consistent with its growth ETF approach.

Distribution Frequency: N/A

Historical Performance

Historically, the ARKW ETF has demonstrated strong performance. From its inception in September 2014 through March 2023, ARKW has generated an impressive cumulative return of over 400%, outpacing the S&P 500's return of around 150% during the same period. It soared in 2020 and 2023, capitalising on the surge in internet usage and technological adoption. However, it also faced downturns in 2022, highlighting the inherent volatility associated with such a focused and innovative investment strategy.

ETF Radar View

The radar chart below shows the general characteristics of the ETF:

Top 3 Reasons to Invest in ARKW

1. Front-Seat to the Future: Invest in companies poised to disrupt established industries and redefine how we interact with technology.

2. Growth Potential: The ETF focuses on companies with significant growth potential in rapidly evolving sectors.

3. Active Management: A team of experts at ARK Invest meticulously selects and weights holdings based on their views of future trends.

Top 3 Reasons Not to Invest in ARKW

1. High Volatility: Focusing on disruptive companies can lead to higher volatility than broader market indexes.

2. High Expense Ratio: ARKW's actively managed nature results in a higher expense ratio than some index funds.

3. Concentration Risk: ARKW has significant exposure to a limited number of sectors and companies, which can amplify gains or losses.

🎯ARKW: Targeting the Future

The ARKW ETF offers investors an exciting opportunity to gain exposure to the companies shaping the future of the internet. It's a high-risk, high-reward investment proposition that can add a dose of innovation to your portfolio. However, it's crucial to understand the inherent volatility and carefully consider your risk tolerance before diving in.

We trust that this article has been both informative and engaging. At ETF UNO, we are steadfast in our commitment to providing valuable insights and information to assist you in navigating the world of ETF investing. The future of finance is brimming with possibilities, and ETF UNO is here to accompany you on your investment journey. Remember, the more you learn, the more informed your investment decisions will be.

DISCLAIMER: The information in this article is for educational purposes and should not be taken as investment advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.