While most of ARK Investment Management’s ETFs have experienced outflows over the past few months, one new fund from the issuer has been rapidly bringing in cash. Although the ARK Transparency ETF (CTRU) is not even two months old, it’s so far brought in $1.83 million in inflows for the month of January and $19.58 million since it launched in December.
CTRU focuses on corporate transparency. The fund seeks to correspond to the Transparency Index, an index that follows the 100 most transparent companies based on a proprietary scoring methodology utilized by Transparency, LLC, the index provider. The index is equally weighted and rebalanced on a quarterly basis.
The index is also exclusionary of the following industries: alcohol, banking, chemicals, confectionary, fossil fuel transportation, gambling, metals, mineral, natural gas, oil, and tobacco.
Cathie Wood, founder, CIO, and CEO of ARK, said in the press release announcing the launch of the fund: “ARK believes that transparency serves as a catalyst for innovation and positive change, enhancing the performance of companies while benefiting the well-being of all. Transparency implies openness, communication, accountability, and trust, and should be a cornerstone of modern society and business.”
“Transparency is a core tenet of Cboe’s guiding principles. We are pleased to collaborate with like-minded partners – ARK and Transparency Invest– to list this truly innovative ETF on our exchange and help drive positive impact for market participants,” said Laura Morrison, global head of listings at Cboe Global Markets. CTRU began trading on the Cboe BZX Exchange on December 8.
Despite the recent outflows that ARK’s ETFs have been experiencing, Wood remains optimistic about a rebound. Last month, she wrote in a blog post: “After correcting for nearly 11 months, innovation stocks seem to have entered deep value territory, their valuations a fraction of peak levels.”
CTRU has an expense ratio of 0.55%.
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