With ARKW, investors gain exposure to cloud computing firm, the rising cryptocurrency phenomenon, social media, the Internet of things and wearable technology, among other new wave technology trends.
ARKW’s top-10 lineup features familiar names such as Apple (NasdaqGS: AAPL), Facebook (NasdaqGS: FB), Twitter (NYSE: TWTR), LinkedIn (NYSE: LNKD) and Charles Schwab. ARKW’s have a weighted average market cap of $80 billion and a median market value of $13 billion, according to Ark data.
The two new ETFs charge 0.95%, which is pricey in the ETF world, but inexpensive when considering a comparable thematic mutual fund is likely to charge 1.5% to 2% per year.
Increased demand for the products and the potential for a more favorable regulatory environment could make actively managed ETFs a $500 billion asset class by 2020, according to a report released in June by SEI Investments. [Big Growth Seen for Active ETFs]
ARK nvestment Management has filed with the Securities and Exchange Commission for two additional funds: ARK Genomic Revolution Multi-Sector ETF (ARKG), and a composite of the three thematic funds (ARKK), according to the statement.
ARKW Top-20 Holdings
| ATHN | ATHENAHEALTH INC | 5.58% |
| AAPL | APPLE INC | 4.91% |
| FB | FACEBOOK INC-A | 4.44% |
| CRM | SALESFORCE.COM INC | 4.24% |
| TWTR | TWITTER INC | 4.13% |
| N | NETSUITE INC | 3.95% |
| NVDA | NVIDIA CORP | 3.89% |
| TCEHY | TENCENT HOLDINGS LTD-UNS ADR | 3.60% |
| SCHW | SCHWAB (CHARLES) CORP | 3.43% |
| NFLX | NETFLIX INC | 3.42% |
| LNKD | LINKEDIN CORP – A | 3.39% |
| GOOG | GOOGLE INC-CL C | 2.94% |
| AMZN | AMAZON.COM INC | 2.93% |
| DIS | WALT DISNEY CO/THE | 2.71% |
| RHT | RED HAT INC | 2.70% |
| INTU | INTUIT INC | 2.53% |
| QCOM | QUALCOMM INC | 2.47% |
| BABA | ALIBABA GROUP HOLDING-SP ADR | 2.44% |
| CSOD | CORNERSTONE ONDEMAND INC | 2.40% |
| DATA | TABLEAU SOFTWARE INC-CL A | 2.25% |
Table Courtesy: Ark Investment Management
Tom Lydon’s clients own shares of Apple, Facebook and Tesla.