Under the Hood of ARKF | ETF Trends

The ARK Fintech Innovation ETF (ARKF) was the most popular fund in ARK’s range of ETFs in June, as measured by net inflows. 

ARKF saw $31 million in net inflows in June, partially offsetting the fund’s outflows this year, which amount to $87 million in net outflows during the first half of the year, according to VettaFi. June was a noteworthy month as all areas and sectors of the market struggled, including value stocks and energy, which both demonstrated more resiliency earlier in the year.

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, early signs of a rebound have been observed.

ARKF is an actively managed ETF that invests in 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. 

The top ten holdings in ARKF as of July 15 include Block Inc (SQ, 9.82%), Shopify Inc – Class A (SHOP, 9.15%), Twilio Inc – A (TWLO, 7.57%), UIPATH Inc – Class A (PATH, 7.26%), Coinbase Global Inc – Class A (COIN, 7.03%), Robinhood Markets Inc – A (HOOD, 5.36%), Mercadolibre Inc (MELI, 5.34%), Adyen NV (ADYEN, 5.15%), Discovery Ltd (DSY, 4.99%), and Teladoc Health Inc (TDOC, 4.13%), according to the fund’s website. 

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