The ARK Fintech Innovation ETF (ARKF) has posted impressive gains as growth stocks have been revitalized in the second half of the year.
ARKF has returned 21.4% over one month, followed by ARKX and ARKW, which have increased 15.6% and 15.4%, respectively, according to VettaFi. Every fund in ARK’s suite of ETFs has posted positive returns over one month.
Like other disruptive technologies, fintech intersects with other innovative segments, including artificial intelligence/automation and blockchain. While the growthiest segments of the market, including fintech names, fell out of favor during the first half, they have staged an impressive rebound so far during the second half.
ARKF invests in U.S. and global companies deemed to be engaged in the theme of fintech innovation, defined as the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works. This includes transaction innovations, blockchain technology, risk transformation, frictionless funding platforms, customer-facing platforms, and new intermediaries, according to the fund’s website.
Companies within ARKW are focused on and expected to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure, and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media, according to the fund’s website.
The fund holds 32 securities as of August 19, according to ARK Invest’s website.
The top ten holdings in ARKF as of July 15 include Block Inc (SQ, 9.97%), Shopify Inc – Class A (SHOP, 9.59%), Coinbase Global Inc – Class A (COIN, 7.85%), Twilio Inc – A (TWLO, 6.47%), UIPATH Inc – Class A (PATH, 6.14%), Mercadolibre Inc (MELI, 5.77%), DraftKings Inc (DKNG UW, 4.97%), Robinhood Markets Inc – A (HOOD, 4.95%), Discovery Ltd (DSY, 4.39%), and Adyen NV (ADYEN, 4.30%), according to the fund’s website.
ARKF was the most popular fund in ARK’s lineup of ETFs in June, as measured by net inflows.
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