AI-Mediated Multiomics Is Transforming Healthcare Economics: ARKG Taps The Investment Opportunity

By Ovid Amadi, PhD

Multiomics Portfolio Manager and Director of Research

Ovid leads ARK’s Multiomics research team, overseeing genomics, biotechnology, and life sciences investment research.

For most of medical history, medicine has waited for disease and treated it only after it appeared. That protracted paradigm is changing because falling DNA sequencing costs, a fuller view of human biology, and a step-change in artificial intelligence are converging to make biology readable, writable, and increasingly predictable. In other words, thanks to what we call “Multiomics,” sick care now can become health care. The ARK Genomic Revolution ETF (ARKG) is built in effort to capture the value associated with that multiomics shift.

What Is Multiomics?

Your genome is the full set of DNA in almost every cell, the instruction set for building and running the body. Genomics is the science of reading it. But DNA is only the first layer, which captures what a person’s biology can do—not what it is actually doing in the present. Multiomics is the integrated study of all the layers that shape health and disease—the genome, the epigenome, RNA, proteins, and metabolites—all read together to reveal the phenotype that matters clinically. That fuller, less expensive picture is what turns medicine from reactive to predictive scientific practice. 

Indeed, taken together, advances in genomics and multiomics are moving the science from the laboratory to the clinic. First, costs have collapsed and we believe it should continue to do so; Second, having learned to “read DNA,” science is now learning to “write” it, enabling the healthcare industry to correct or turn off the sequences that drive disease.

Artificial Intelligence Is Catalyzing The Opportunity

As artificial intelligence becomes integral to new healthcare practices, a “flywheel” begins to emerge, as illustrated in the graphic below. Less expensive sequencing widens adoption; wider adoption generates molecular data; that data trains better models; and better models produce better tools, tests, and treatments, which should lower costs even more.

Note: The statistics provided on this slide represent ARK’s research-based forecasts for 2030, which may not be realized. The companies listed are currently working toward achieving the forecasted results, but the list does not include all companies that may be pursuing the same goals, and which may do so more successfully. The companies listed may or may not be held in ARK portfolios. The information provided should not be used as the basis for any investment decision, and it should not be assumed that an investment in any of the companies listed was or will be profitable. Forecasts are inherently limited and cannot be relied upon. Source: ARK Investment Management LLC, 2026.

And the scale is striking. ARK’s research suggests that the data generated each year by next-generation molecular tests already exceeds the ~15 trillion tokens used to train frontier language models, and could grow around ten-fold by 2030, as shown in the two charts below.

Source: ARK Investment Management LLC, 2026, based on data from Tempus AI 2025, Guardant Health 2025, and Exact Sciences 2025 as of December 31, 2025. In addition to those sources, certain information presented may be the result of ARK’s internal analyses, which draw on various additional sources of information. For informational purposes only and should not be considered investment advice. Forecasts are inherently limited and cannot be relied upon.

An entirely new drug development economics follows. For example, ARK’s research suggests that AI can decrease the time to bring a drug to market by ~40%, from roughly 13 to eight years, and decrease total development cost approximately four-fold, from ~$2.4 to $0.7 billion, as shown below. For a sector that has assigned little value to early-stage pipelines, that is a material re-rating. The outsized prize appears most prevalently in cures. We estimate that a one-time gene-editing treatment for hereditary angioedema could save the US health system ~$52 billion over patients’ lifetimes,¹ for example, and that a successful cure could be ~20 times more valuable than today’s standard-of-care drugs.²

Source: ARK Investment Management LLC, 2026, based on data from Jayatunga et al. 2024, Rodriguez et al. 2023, Absci 2025. For informational purposes only and should not be considered investment advice. Forecasts are inherently limited and cannot be relied upon.

Cathie Wood, ARK’s Chief Executive Officer and Chief Investment Officer,  calls healthcare the most profound application of AI across ARK’s themes. For years, she has argued that the traditional divide between healthcare and technology research obscured the scientific and economic import of their convergence. As the divide erodes, companies combining AI and genomics/multiomics/biology are growing at rates that neither set of analysts has been used to recognizing.

The ARK Genomic Revolution ETF

The ARK Genomic Revolution ETF (ARKG) is a concentrated, actively managed portfolio of 30-60 companies spanning the multiomics value chain. On the tools and sequencing side, the fund holds Illumina, 10X Genomics, Twist Bioscience, and GeneDX; in diagnostics and decision support, it holds Tempus AI and Natera; in gene editing, it holds CRISPR Therapeutics, Beam Therapeutics, and Intellia Therapeutics; and in AI-native drug design, it holds Absci.³  

Several holdings with near-term catalysts are top-10 holdings in terms of weight:

• Twist Bioscience has been moving into AI-based drug discovery, drawing interest from biotech, pharma, and technology firms. The market already recognizes that, making Twist Bioscience the fund’s top contributor over the most recent 12 months. (Please see the table a few paragraphs below.) 
• Tempus has been growing its data and oncology-testing businesses at ~25-30% per year, its molecular dataset a durable edge in clinical decision support.
• CRISPR Therapeutics has approximately five clinical readouts due in the second half of 2026, alongside the patient ramp for Casgevy, its sickle-cell therapy co-developed with Vertex.
• Intellia Therapeutics has strong Phase 3 data in hand and expects to file its hereditary angioedema treatment this year, with launch anticipated in 2027.

ARKG’s Performance

ARKG will not track and should not be read as a proxy for the healthcare sector. Broad healthcare indices are led by large-capitalization pharmaceutical, managed-care, and medical-device companies, many of them mature and defensive. ARKG is designed to be different—a concentrated, high-conviction allocation to the smaller- and mid-sized innovators driving the multiomics and AI-in-biology transition.

For investors assessing active management, the relevant question is what an active manager in this space can accomplish relative to  a passive healthcare allocator. ARKG concentrates capital in the companies that our deep, focused analyses discern are best placed to benefit from falling sequencing costs, AI-accelerated drug development, and the shift toward cures; also we deliberately avoid the larger, slower-growth parts of healthcare that dominate a sector index. Our aim is to generate returns by investing in what we believe will be the winning innovators. 

Over the past twelve months, ARKG returned ~73.03% based on net asset value (NAV), more than three times the ~17%-22% delivered by broad healthcare and global equity indices, as shown below. As measured by the MSCI World Health Care Index, Global healthcare returned ~17% and lagged world equities over the period. ARKG’s outperformance accelerated in the closing months.

Source: ARK Investment Management LLC, BNY, as of June 30, 2026.

Annualized* Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal will fluctuate so that an investor’s shares when redeemed may be worth more or less than the original cost. Returns for less than one year are not annualized. As stated in the ARK ETFs’ current prospectuses, the expense ratio for ARKG is 0.75%. For most recent month end performance please call 1-800-679-7759 or visit www.ark-funds.com. Extraordinary performance is attributable in part due to unusually favorable market conditions and may not be repeated or consistently achieved in the future. Additional information about fees and expense levels can be found in the ARK ETFs’ prospectuses. Net asset value (“NAV”) returns are based on the dollar value of a single share of an ARK ETF, calculated using the value of the underlying assets of the ARK ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time. Market returns are based on the trade price at which shares are bought and sold on the exchange using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times. Total Return reflects reinvestment of distributions on ex-date for NAV returns and payment date for Market Price returns. The market price of ARK ETF shares may differ significantly from their NAV during periods of market volatility.

Recent improvement in ARKG’s performance reflects several emerging tailwinds: 

• Stronger clinical data across the portfolio 
• The emergence of AI-driven business models, better commercial execution at key holdings 
• A more favorable macro and regulatory environment 
• A return of biotech merger and acquisition activity at a pace not seen since before the pandemic

In our view, when a focused fund pulls so far ahead while its competitor sector benchmarks essentially flatline, the explanation lies in the work being accomplished by the companies that the focused fund owns.

One Year Attributions: The Top 10 Contributors to ARKG’s Returns

ARKG's core holdings—none of them a constituent of the S&P 500 Health Care Index—drove its outperformance, as shown in the table below. The fund's ten largest contributors generated approximately 60 of its 74 percentage points of gross return over the year, versus 19.90% for the S&P 500 Health Care Index over the same period. Twist Bioscience led the way, adding nearly 12 points as it rose more than 179%, followed by Absci and 10x Genomics. Returns across those positions were exceptional, with several holdings, among them Absci and Compass Pathways, more than quadrupling. We highlight the fact that these names are the genomics, diagnostics, and AI-enabled drug-discovery companies at the center of the ARKG portfolio.

Source: ARK Investment Management LLC, 2026. Top ten holdings by gross contribution to ARKG return for the 12 months to June 30, 2026.

The convergence of AI and genomics/multiomics/biology is shining in clinical results, revenue growth, and the value of companies’ pipelines. The past year demonstrates what that convergence can mean for an actively managed strategy. ARKG returned several times its healthcare benchmark by owning the innovators reshaping the sector—not the traditional names that dominate passive indices. For investors seeking exposure to the transformation of sick care to healthcare in a single, actively managed ETF, ARKG offers a clear course of action.

Important Information

Investors should carefully consider the investment objectives and risks as well as charges and expenses of an ARK Fund before investing. This and other information are contained in the ARK ETFs’ prospectuses and summary prospectuses, which may be obtained by visiting www.ark-funds.com. The prospectus and summary prospectus should be read carefully before investing.

An investment in an ARK Fund is subject to risks and you can lose money on your investment in an ARK Fund. There can be no assurance that the ARK Funds will achieve their investment objectives. The ARK Funds’ portfolios are more volatile than broad market averages. The ARK Funds also have specific risks, which are described below. More detailed information regarding these risks can be found in the ARK Funds’ prospectuses.

The principal risks of investing in ARKG: Equity Securities Risk. The value of the equity securities the Fund holds may fall due to general market and economic conditions. Foreign Securities Risk. Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities. Health Care Sector Risk. The health care sector may be adversely affected by government regulations and government health care programs, restrictions on government reimbursements for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are heavily dependent on patent protection and intellectual property rights and the expiration of a patent may adversely affect their profitability. Biotechnology Company Risk. A biotechnology company’s valuation can often be based largely on the potential or actual performance of a limited number of products and can accordingly be greatly affected if one of its products proves, among other things, unsafe, ineffective or unprofitable. Biotechnology companies are subject to regulation by, and the restrictions of, the U.S. Food and Drug Administration, the U.S. Environmental Protection Agency, state and local governments, and foreign regulatory authorities. Pharmaceutical Company Risk. Companies in the pharmaceutical industry can be significantly affected by, among other things, government approval of products and services, government regulation and reimbursement rates, product liability claims, patent expirations and protection and intense competition. Disruptive Innovation Risk. Companies that ARK believes are capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. Companies that develop disruptive technologies may face political or legal attacks from competitors, industry groups or local and national governments. These companies may also be exposed to risks applicable to sectors other than the disruptive innovation theme for which they are chosen, a7nd the securities issued by these companies may underperform the securities of other companies that are primarily focused on a particular theme. Detailed information regarding the specific risks of ARKG can be found in the ETF’s prospectus. Additional risks of investing in ARKG include Foreign Securities Risk, Information Technology Sector Risk, equity, market, management and non-diversification risks, as well as fluctuations in market value and NAV.   

Additional risks of investing in ARK ETFs include market, management and non-diversification risks, as well as fluctuations in market value NAV. ETF shares may only be redeemed directly with the ETF at NAV by Authorized Participants, in very large creation units. There can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.

To view the top ten holdings for ARKG click here.

ARK Investment Management LLC is the investment adviser to the ARK Funds.

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