3 ETF Easter Eggs: ARKK, YYY, QXTR

By Toroso Asset Management

We have been trying to stick to the themes and holidays lately, so this week’s TETF.Index post is about Easter, more particularly Easter eggs. Easter egg hunts are a lot of fun with kids, whether you are hiding them or seeking!

One trend lately with Easter eggs has nothing to do with Easter though. QZ.com defines an Easter Egg as, “a joke or reference that’s intentionally hidden inside a movie, TV show, game, or other work of art. It’s usually a visual clue that rewards close viewing—just like in a traditional Easter egg hunt.”

One movie-making juggernaut has been carefully constructing its universe for decades, teasing and exciting fans with past and future movie references. This industry-leader is Disney. Disney famously puts Easter eggs throughout its movies such as Toy Story, Aladdin, Finding Nemo, Up, Frozen, and so many others.

Related: Gold Investing for ETF Leprechauns

Fun fact on Disney: It is actually under-owned by ETFs. Only 116 ETFs hold shares of Disney which is 2.51% below the average (7.00%). This information can be easily researched on our Toroso ETF Think Tank website.

However, Disney isn’t the only one that hides Easter Eggs in its products. In fact, there are several ETPs held within other ETFs. The three we are going to focus on are: ARKK, YYY, and QXTR

1.Our first ETF Easter egg is GBTC within the ARK Innovation ETF (ARKK)

ARKK just won ETF of the year and they are the only ETF to own the Bitcoin Investment Trust (GBTC). At this point the exposure to GBTC is under 1%, but last year as it soared, the position was much more substantial. GBTC is not an ETF, although Morningstar incorrectly classifies it as one. GBTC is an emerging growth company that own bitcoin.