ARKW, the first ETF to add bitcoins to its portfolio, has benefited as the digital currency rallied this year. ARKW is an actively managed ETF that focuses on disruptive companies that help transform the market and was the first ETF to invest in bitcoins after the portfolio manager acquired publicly traded shares of Grayscale’s Bitcoin Investment Trust (OTCQX: GBTC), which is now the biggest component in the ARKW’s underlying portfolio.
Similarly, the ARK Innovation Fund (NYSEArca: ARKK), which also includes GBTC as its largest holding, is up 44.7% year-to-date. The ARK Innovation Fund “seeks to invest in the cornerstone companies included in the other three thematic funds (ARKQ, ARKW and ARKG) that further the fund’s focus on investing in disruptive innovation. Such companies may include ones that benefit from big data, cloud computing, cryptocurrencies, the sharing economy, genomic sequencing, molecular medicine, agricultural biology, 3D printing, energy storage, and autonomous vehicles,” according to a statement issued by ARK Investment Management.
Emerging market internet names have also been outperforming, notably Chinese internet companies. The Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ), which focuses on internet names, notably those that cater toward online shopping or e-commerce, increased 42.9% so far this year, and the KraneShares CSI China Internet Fund (NasdaqGM: KWEB), which is solely comprised of Chinese internet names, added 40.7%.
The emerging market internet segment has also capitalized on the renewed focus on growth-oriented stocks earlier this year, along with the search for greater value in international markets, such as developing company stocks, as the U.S. equity rally pushes into its ninth year with even pricier valuations.
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