An 'Omics Revolution: What's Next for High-Flying 'ARKG' | ETF Trends

Investors looking for disruptive growth in the healthcare sector need not look beyond the ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG).

ARKG’s stellar track record is rooted in ARK Investment Management’s ability to put together a portfolio that is reflective of the myriad growth avenues in the genomics space today.

“The ‘omics revolution describes how technology is transforming our understanding of the fundamental building blocks of life,” writes ARK analyst Simon Barnett. “Starting with the Human Genome Project more than 20 years ago, next-generation DNA sequencing accelerated the genomics revolution. Thanks to recent research breakthroughs, next generation sequencing (NGS) instruments can study the transcriptome—the collection of RNA molecules in an organism. The natural next step for the ‘omics revolution, in our view, is proteomics—the analysis of proteins.”

ARKG 1 Year Performance

Another New Frontier for ARKG

ARKG provides exposure to an array of new healthcare concepts, including the proteomics.

“Proteomics involves the study of the three-dimensional structure and sequence of protein molecules. Improvements in mass-spectrometry and novel techniques like Cryo-EM are helping researchers identify the structure of proteins,” notes Barnett. “A few weeks ago, Google’s DeepMind shocked the world with AlphaFold (v2), a neural-network-based algorithm capable of converting a protein sequence into an accurate structural prediction.”

ARKG includes companies that merge healthcare with technology to capitalize on the revolution in genomic sequencing. These companies try to better understand how biological information is collected, processed, and applied by reducing guesswork and enhancing precision; restructuring health care, agriculture, and pharmaceuticals; and enhancing our quality of life.

Next-generation protein sequencing (NGPS) could be a growth outlet within proteomics if it can catch up with next-generation sequencing that’s protein-focused.

“Life sciences entrepreneur, Jonathan Rothberg, is exploring this new frontier. His company, Quantum SI (private), recently filed a patent that describes NGPS methods and compositions addressing many of these challenges. In our view, an instrument capable of sequencing proteins with single-molecule accuracy and high sample throughput – cost-effectively – could turbocharge the ‘omics revolution,” adds Barnett.

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.