While 3D printing has been around for a while, its investment potential is still in the early innings. The recent renaissance of the ARK 3D Printing ETF (CBOE: PRNT) is just getting started.
PRNT is the first US-listed ETF dedicated to the 3D printing theme. The fund is one of two passively managed products from New York-based Ark Investment Management. ARK believes 3D printing will revolutionize manufacturing by collapsing the time between design and production, reducing costs, and enabling greater design complexity, accuracy, and customization than traditional manufacturing.
PRNT is up 78% over the past year, despite being a relatively small industry in 2020. That’s poised to change in a big way.
“ARK believes 3D printing will revolutionize manufacturing, growing at an annual rate of roughly 60% from $12 billion last year to $120 billion in 2025,” according to the issuer.
The Long-Term Growth Trajectory
PRNT’s underlying index index “is composed of equity securities and depositary receipts of exchange-listed companies from the U.S., non-U.S. developed markets and Taiwan that are engaged in 3D printing-related businesses within the following business lines: (i) 3D printing hardware, (ii) computer-aided design (“CAD”) and 3D printing simulation software, (iii) 3D printing centers, (iv) scanning and measurement, and (v) 3D printing materials,” according to Ark.
Integral to the PRNT thesis is that 3D printing intersects with other disruptive segments, enhancing revenue streams and diversification among end users. A prime example of a fertile end market for 3D printing is autonomous technology.
“3D printing is accelerating innovation thanks to low-costs and rapid prototyping. It lowers the weight of low volume, highly complex parts, saving significant costs. The aerospace industry should be a prime beneficiary,” notes ARK.
As regulatory guidelines become clearer, healthcare is expected to be a major market for 3D printing products and services in the years ahead. The same is true of other well-known industries.
Healthcare, including dental, is one of many markets that could prove to be a potent catalyst for PRNT in the year ahead. Retail is another arena ripe for 3D printing disruption.
For more on disruptive technologies, visit our Disruptive Technology Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.