Skip to main content
What We Do: A Letter To Investors From Cathie Wood Read Now

Looking For Our European Funds?

Click Here
About How To Invest
ARK Invest logo
You Are Entering ark-funds.com

Please read this page before proceeding, as it explains certain restrictions imposed by law on the distribution of this information and the countries in which the funds are authorized for sale. By proceeding, you are confirming you understand that ARK Investment Management LLC or its affiliates (collectively, “ARK”), makes no representation that the content of the website is appropriate for use in all locations, or that the transactions, securities, products, instruments or services discussed at this website are available or appropriate for sale or use in all jurisdictions or countries, or by all investors or counterparties.


This section of the website is operated by ARK, and is only directed at U.S. investors or those otherwise authorized to conduct investment business in the U.S. Persons resident in territories other than the United States should not access this website.


It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction. Certain of the funds and advisory products and services referenced on this website may be managed or offered/provided by affiliates of ARK. Additionally, certain of the funds described in the following pages may be marketed in certain jurisdictions only. Any entity forwarding the material or information contained on this website, which is produced by ARK in the United States, to other parties takes full responsibility for ensuring compliance with applicable securities laws in connection with its distribution.


This website only includes information on those funds that are registered for sale in the United States.


By accessing this website, you are confirming that you agree to the Terms and Conditions of this website and that you are resident in the United States or those otherwise authorized to conduct investment business in the U.S.


The contents of this website have been prepared for informational purposes only without regard to the investment objectives, financial situation, or means of any particular person or entity, and ARK is not soliciting any action based upon them. No information included on this website is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any fund; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. ARK recommends that you seek independent financial and tax advice before making any investment decisions. Investment in any of the funds described in this website should only be made on the basis of the terms and conditions of the most recent applicable offering documents (including any relevant supplements).


All material has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. Some of the content on this website may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. From time to time, ARK may also make additional features available to users on this website on such terms and conditions as may be set forth in a modification to this Agreement or otherwise on the ARK website.


The ARK ETF Trust Thematic Actively Managed ETF’s are distributed by Foreside Fund Services, LLC (“Foreside“), which is not affiliated with ARK Investment Management LLC. Check the background of Foreside on FINRA’s BrokerCheck.


You should carefully consider the investment objective, risks, charges and expenses of a Fund before investing. A Fund’s prospectus and summary prospectus contain this and other important information about a Fund, which can be obtained by clicking the corresponding link or dialing the indicated phone number herein. Please read the appropriate prospectus carefully before investing.


GENERAL RISK FACTORS


You should be aware that past performance is not a reliable indicator of future performance. Please note that the price of units or shares and the income from them can fall as well as rise and you may not get back the amount originally invested. Income receivable may vary from the amount of income projected at the time of making the investment.


Exchange rate fluctuations may affect the value of an investment and any income derived from it.


If you exercise any right to redeem, you may not get back the amount initially invested if the unit or share price has fallen since you invested. Deductions for charges and expenses, particularly the initial charge (if any), are not made uniformly throughout the life of the investment, so if you redeem out of the investment during the early years, you may not get back the amount invested.


There can be no guarantee that the tax position or proposed tax position prevailing at the time of an investment will not change. Dividends and capital gains on securities issued in the relevant funds may be subject to withholding taxes imposed by the countries in which each particular fund invests.


The offering documents for the investment funds contain important information summarizing the relevant risk factors pertaining to the investment or relevant funds. Please note, however, that no summary of risk factors is exhaustive, and there may be other risks that could affect your investment. For your own benefit and protection you should read the most recent offering documents (including any relevant supplements) carefully before investing. If you do not understand any point please ask for further information.


The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject any of the funds described herein, ARK (including its affiliates) or any of their products or services to any registration, licensing or other authorization requirement within such jurisdiction or country. Nothing on this website shall be considered a solicitation to buy or sell a security, product or service (including advisory service) to any person.


HYPERLINKS


ARK does not recommend or endorse and accepts no responsibility for the content of any website not operated by ARK which you may visit by following a link from this website. You acknowledge and agree that neither ARK nor any of its affiliates is responsible for the availability of such third-party websites or resources, does not endorse, approve, investigate or verify, and is not responsible or liable for any content, advertising, products, or other materials on or available from such websites or resources. You further agree that neither ARK nor any of its affiliates shall be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, products or services available on such external websites or resources. These links are provided as a convenience and solely for informational purposes. ARK is not making any recommendation to invest in, purchase, or sell any securities or other products or services offered on the linked websites, nor has ARK sought to verify or confirm the information contained in the linked websites. Accordingly, ARK disclaims any responsibility for the linked websites.


No other website, without the prior written permission of ARK, is authorized to link to any part of this website.


COOKIES


ARK uses cookies for collecting user information from certain pages of this website. A cookie is a file that is stored on the hard disk of a computer by the web browser on a computer. It contains information sent by the website that a user has visited. A cookie identifies users and can store information about them and their use of a website. ARK uses cookies to keep track of user activity, which allows ARK to identify which areas of the website are more interesting to the users so that improvements can be made to this website.


ARK expressly reserves the right to monitor any use of this website.


I confirm that I have read and accept the Terms and Conditions of using this website and that I am based in the United States or those otherwise authorized to conduct investment business in the United States.

Q2 2020: Commentary From ARK’s CIO

June 30, 2020 | ETF

By ARK Invest

During the second quarter, broad-based equity indexes – as measured by the S&P 500 and MSCI World – rebounded from the coronavirus crisis at a rate much more rapid than that after the global financial crisis in 2009. Because fiscal and monetary policy makers have responded with record-breaking measures to “flatten the curve” and slow the spread of COVID-19, fears of an extended global recession appears to have dissipated. That said, during June a resurgence of “hot spots” in China and the US boosted equity market volatility, as measured by the CBOE VIX. Meanwhile, the US Treasury yield curve steepened slightly, with the 10-year Treasury yield stabilizing in the 65 basis point (bp) range and the 90-day Treasury rate edging lower to 14bp.

Because the panic has peaked and most countries have “bent the curve”, curbing the spread of COVID-19, the equity market as measured by the MSCI World has recovered more than half of this year’s loss. In our view, the markets discounted a significant amount of bad news and overdid it in March. In turn, the stock rout highlighted the seriousness of COVID-19, not only galvanizing government policymakers into sweeping moves to mitigate and reverse its impact on the global economy but also impressing upon individuals and businesses the importance of contributing to the solution with social distancing and better hygiene. The resurgence of the virus hot spots in both China and the US has reinforced the importance of these precautionary measures. At the same time, the consumer saving rate in the US has continued at record breaking levels, 32% and 23% in April and May respectively, likely mirroring high rates in the rest of the world and suggesting that pent-up consumer demand will support the recovery now under way. Indeed, given the significant drawdown in US retail inventories in April and May, businesses seem to have been caught off guard and are scrambling to catch up.

Relative to the S&P 500 Index and the MSCI World Index, ARK’s five actively managed ETFs and two self-indexed ETFs outperformed during the second quarter. 

To read a summary of ARK’s biggest contributors and detractors, please see below.

ARK Autonomous Technology and Robotics ETF (ARKQ)

The ARK Autonomous Technology and Robotics ETF (ARKQ) outperformed broad-based market indexes. Among the top contributors to performance was Tesla (TSLA). Tesla’s first quarter deliveries surpassed analysts’ expectations before its Fremont factory shut down in response to the coronavirus crisis. After Fremont reopened in early May, analysts began to anticipate better than expected second quarter deliveries as well as the potential for a Terafactory for Cybertruck production in Austin, Texas. Tesla continues to gain share of the global electric vehicle market with 26% of sales year-to-date, up from 22.5% in 2019. 2U (TWOU) also contributed positively as analysts focused on the increase in demand for online education, and 2U’s robust position, in the midst of the COVID-19 crisis. 2U surpassed first quarter expectations on both, the top and bottom line, and announced an undergraduate program at Simmons University.

Among the bottom contributors were Virgin Galactic Holdings (SPCE) and Elbit Systems (ELST). Virgin Galactic surged on SpaceX’s success with its Crew Dragon launch and then fell on news that Richard Branson was selling shares to help fund his other companies. Virgin Galactic continued to make progress towards its goal of launching a human into space, completing its first glide flight from Spaceport America and signing a Space Act agreement with NASA. Under the agreement, Virgin Galactic will develop a new private orbital astronaut readiness program. Elbit Systems (ELST) missed expectations on revenue and earnings for its first quarter but announced not only a three-year $103 million contract for electronic warfare suites in Asia but also a two-year $53 million contract for intelligence suites in Southeast Asia.

ARK Next Generation Internet ETF (ARKW)

The ARK Next Generation Internet ETF (ARKW) outperformed the broad-based market indexes during the quarter. Among the top contributors was Tesla (TSLA) for reasons noted above. Square (SQ) also contributed as investors began to grasp the potential of Cash App as a Digital Wallet. While Square’s seller ecosystem still is facing pressures from COVID-19 related commerce restrictions, Cash App seems to have gained market share, especially because of the important role it played in facilitating the government’s Payment Protection Plan (PPP).

Among the top detractors were LendingClub (LC) and Slack Technologies (WORK). LendingClub detracted from performance based on concerns about bad loans in an economically challenging environment. In response, the company cut ~30% of its workforce and reduced compensation for top management, increasing the odds that regulators will approve its acquisition of Radius Bank, in turn enabling it to build a Digital Wallet. In June, LendingClub announced the expansion of its LCX platform, aiming to increase transparency as registered institutional investors analyze, price, and bid on loans. LCX should increase LendingClub’s total addressable market and preserve its liquidity, as the loans will not be held on balance sheet. Slack Technologies detracted from performance after reporting a 50% increase in first quarter revenues, missing expectations that the COVID-19 crisis had elevated for this collaborative online messaging network. Importantly, Slack won Amazon Web Services (AWS) as a customer and launched ‘Connect’, offering cross-company collaboration opportunities. 

ARK Genomic Revolution ETF (ARKG)

The ARK Genomic Revolution ETF (ARKG) outperformed the broad-based market indexes, primarily because of Arcturus Therapeutics’ (ARCT) which reported pre-clinical data on its mRNA COVID-19 vaccine that showed preliminary efficacy. Invitae (NVTA) also contributed to performance after announcing the acquisition of ArcherDx, a promising combination in the molecular diagnostics sector. On a high level, the merger marks Invitae’s entrance into the somatic testing market—profiling cancerous tissue using next generation sequencing to surface mutations and match patients to precision therapies. The acquisition also expands the value proposition for its biopharma customers who will be able to design somatic assays in ArcherDx’s digital design studio. ArcherDx’s kit and software model offers high margin potential, enabling Invitae to power clinical outcome studies and integrating it more deeply into the oncology treatment ecosystem.

Among the top detractors were Iovance Biotherapeutics (IOVA) and Cellular Biomedicine (CBMG). Iovance Biotherapeutics  reacted not only to the sudden departure of its CFO but also to Seattle Genetics’ positive data in cervical cancer, an indication that Iovance also is targeting. Iovance’s therapy involving tumor infiltrating lymphocytes (TILs) had a response rate nearly double that of Seattle Genetics, which could mean faster approval. Cellular Biomedicine detracted from performance in response to the coronavirus-related slowdown in clinical trial and research.

ARK Fintech Innovation ETF (ARKF)

The ARK Fintech Innovation ETF (ARKF) outperformed the broad-based market indexes during the quarter. Among the top contributors were Square (SQ), for reasons noted above, and Mercadolibre (MELI). MercadoLibre contributed to performance as investors noted the impact that COVID-19 has had on the adoption of e-commerce and digital payments in Latin America. It also announced its third fulfillment center in Brazil, scheduled for July 2020, as it continues to enhance its position as the leading e-commerce platform in Latin America.

Among the top detractors were LendingClub, for reasons noted above, and Wirecard AG. Wirecard traded down after the company announced that its auditor, Ernst & Young, was unable to obtain sufficient evidence of the cash balances associated with $2.1 billion in Asian trust accounts. ARK disgorged its position immediately upon learning that Wirecard either had perpetrated accounting fraud or had been its victim.

ARK Innovation ETF (ARKK)

With some of the highest conviction names from the Funds discussed above, the ARK Innovation ETF (ARKK) outperformed the broad-based indexes during the quarter. Among the top contributors were Tesla and Invitae, for reasons noted above. Detracting from performance were LendingClub and Iovance Biotherapeutics, for reasons noted above.

The 3D Printing ETF (PRNT)

The ARK index ETFs, The 3D Printing ETF (PRNT) and the ARK Israel Innovation Technology ETF (IZRL), outperformed the broad-based equity indexes but underperformed their more specialized benchmark indexes. Proto Labs (PRLB) was the largest contributor in PRNT, beating analyst expectations for revenue and earnings in its first fiscal quarter based on its rapid manufacturing service during the coronavirus pandemic during which time it has shipped 4 million parts with COVID-19 applications. 3D Systems (DDD) was the largest detractor from performance as the pandemic impacted printer sales to its dental and jewelry customers significantly. In May, 3D Systems announced Jeffrey Graves, formerly CEO of MTS Systems, as its new CEO.

ARK Israel Innovation Technology ETF (IZRL)

IZRL’s top contributor to performance was Compugen (CGEN) thanks to the success of its TIGIT and PVRIG programs. The FDA cleared an IND application for a Phase 1/2 study evaluating COM701, an anti-PVRIG antibody, in combination with Opdivo, a check point inhibitor, and Bristol Myers Squibb’s investigational anti-TIGIT antibody in patients with advanced solid tumors. The largest detractor was Bet Shemesh Engines Holdings (BSEN), as airline travel plummeted in the face of the COVID-19 crisis.

ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed. Certain of the statements contained may be statements of future expectations and other forward-looking statements that are based on ARK’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements.

Explore ARK Funds

Featured Funds:

ARKQ Icon

ARK Autonomous Tech. & Robotics ETF

ARKW Icon

ARK Next Generation Internet ETF

ARKG Icon

ARK Genomic Revolution ETF

ARKK Icon

ARK Innovation ETF

PRNT Icon

The 3D Printing ETF

IZRL Icon

ARK Israel Innovative Technology ETF

ARKF Icon

ARK Fintech Innovation ETF

ARKX Icon

ARK Space Exploration & Innovation ETF

See All

ARK Trade Notifications

ARK offers fully transparent Exchange Traded Funds (“ETFs”) and provides investors with trade information for all actively managed ETFs.