Skip to main content
The ARK Venture Fund Is Now Hosted Alongside ARK's ETFs! Visit The Venture Portfolio

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 2021: Commentary From ARK’s CIO

June 30, 2021 | ETF

ARK Invest
ARK Invest

During the second quarter, broad-based global equity indexes – as measured by the S&P 500 and MSCI World – continued to appreciate as many economies began to reopen in response to successful vaccination rollouts. On Capitol Hill, the Biden Administration continued negotiations on what could become a bipartisan infrastructure bill and another source of economic stimulus. Meanwhile, in ARK’s view, the odds of significant capital gains and income tax increases in the US have declined thanks to an agreement signed by the vast majority of 130 countries that, if ratified in October, would impose a 15% minimum tax rate on large global corporations. Now that midterm election campaigns are in early stages, narrow majorities in both Houses of Congress also could lower the probability of onerous tax measures that appear to be unpopular. The US yield curve flattened slightly as the 10-year Treasury bond yield fell to 1.47%, well below the 1.74% peak posted at the end of March. In other words, the bond market does not seem to be corroborating the fears of inflation that have dominated headlines recently.

In ARK’s view, inflation will prove temporary thanks both to the base effects caused by price collapses during the coronavirus crisis last year and to supply chain bottlenecks that could be causing double- and triple-ordering of supplies which, in turn, could lead to a significant inventory overhang and a commodity price collapse. With the exception of oil, cracks in the commodity markets already are apparent. From their peaks in the second quarter, lumber prices have dropped more than 57% from $1,686 to $716 per thousand board feet while copper prices have dropped roughly 13% from $4.78 per pound to $4.16. Oil prices probably will not be far behind despite shareholder demands for cutbacks in energy-related capital spending. If drivers in the ride-sharing space migrate to electric vehicles and take advantage of the lower total cost of ownership relative to gas-powered vehicles, any decline in oil prices could be exacerbated.

In ARK’s view, exacerbating the cyclical deflation will be two secular sources of deflation, one good for economic activity and another deleterious. Innovation is the source of good deflation, as learning curves cut costs and increase productivity. Instead of investing to capitalize on the exponential opportunities associated with the 14 technologies evolving today, however, many companies have catered to short-term oriented shareholders who have demanded results “now”, leveraging their balance sheets to buy back stock, bolster earnings, and increase dividends. As a result, facing the disintermediation and disruption associated with aging products and services, they could be forced to cut prices to clear inventories and service bloated debts, resulting in deflation with a deleterious impact on economic activity.

If ARK is correct that the risk to the outlook is deflation, not inflation, then nominal GDP growth is likely to be much lower than expected, suggesting that scarce double-digit growth opportunities will be rewarded accordingly. Growth stocks in general and innovation-driven stocks in particular could be the prime beneficiaries.

During the second half of the quarter, value gave way to growth in performance. Through mid-May, as commodity prices soared, the rotation from growth/innovation toward value/cyclical strategies gained momentum. ARK believes that this rotation has broadened and strengthened the bull market, preventing another tech and telecom bubble and likely setting the stage for another leg up in innovation-based strategies. In late May and June, after the reset in growth valuations and the drop in commodity prices like lumber and copper, investors began to return to growth/ innovation at the expense of value/cyclical strategies. In ARK’s view, the coronavirus crisis transformed the world significantly and permanently, suggesting that many innovation-driven stocks could be productive holdings during the next five to ten years. Among the largest beneficiaries of the rotation toward cyclicals during the past six to nine months have been two sectors that ARK believes will be disrupted the most by innovation during the next five years: Energy and Financial Services. In ARK’s view, autonomous electric vehicles and digital wallets, including cryptocurrencies and decentralized financial services (DeFi) associated more broadly with blockchain technologies, will disrupt and disintermediate both Energy and Financial Services significantly during the next five years.

ARK’s five actively managed thematically focused ETFs and two self-indexed ETFs appreciated but underperformed relative to the S&P 500 and MSCI World Indexes during the second quarter. That said, the ARK Innovation ETF (ARKK), a concentrated portfolio of high conviction names with exposure to all of the ARK’s disruptive innovation themes, outperformed the broad-based global indexes.

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) underperformed the broad-based market indexes during the quarter. Among the top detractors were Workhorse Group (WKHS) and Virgin Galactic Holdings (SPCE). WKHS suffered as Capitol Hill failed to clarify its position on the conversion of the US Postal Services’ fleet to electric vehicles. SPCE depreciated not only in response to intensified competition from Blue Origin and SpaceX but also to lower than expected earnings and revenue as well as flight schedule delays and Founder Richard Branson’s decision to sell shares. ARK exited both WKHS and SPCE, capitalizing on the market’s downside volatility by rotating into higher conviction names.

Among the top contributors were 3D Systems (DDD) and Alphabet (GOOG). DDD appreciated in response to better than expected revenues and earnings in the first quarter. In addition, 3D Systems announced a partnership with CollPlant Biotechnologies to 3D bioprint regenerative soft tissue for breast reconstructions. GOOG appreciated in response to e-commerce tailwinds and a significant rebound in ad revenue. Alphabet also announced several product and service initiatives, including a Pixel 5A 5G phone and the expansion of Google Workspace, as well as several contracts for GCP, its cloud platform.

ARK Next Generation Internet ETF (ARKW)

The ARK Next Generation Internet ETF (ARKW) underperformed the broad-based market indexes during the quarter. Among the top detractors were Grayscale Bitcoin Trust (GBTC) and Coinbase Global (COIN). GBTC responded to a 45%+ drop in the price of bitcoin, precipitated in part, we believe, by Elon Musk’s second thoughts about the heavy use of energy in bitcoin mining. ARK believes that bitcoin mining, when incorporated into solar+battery utility ecosystems, could accelerate the proliferation of renewables faster than otherwise would be the case. COIN also suffered from the drop in bitcoin and other cryptoassets. Founded in 2012 and now one of the leading crypto exchanges in the world, Coinbase has attracted 56+ million users in part thanks to its onramps and its commitment to government regulations.

Among the top contributors were Roku (ROKU) and Trade Desk (TTD). ROKU rallied in response to strong revenues and earnings, notably platform ad revenue and gross profits. Roku has increased its commitment to original content and has sustained user gains generated during the coronavirus crisis. In a volatile quarter, TTD appreciated after Alphabet announced a delay in its plan to block third-party cookies from Google Chrome. Trade Desk is an ad-tech company that facilitates audience targeting across media formats.

ARK Genomic Revolution ETF (ARKG)

The ARK Genomic Revolution ETF (ARKG) underperformed the broad-based market indexes during the quarter. Among the top detractors were Teladoc Health (TDOC) and Iovance Biotherapeutics (IOVA). TDOC depreciated as several companies including Amazon announced competitive incursions into the digital health space. ARK believes Teladoc can process and analyze data unlike any competitors, explaining why it has become a leader in telehealth and a single touchpoint for an extensive set of services. Historically in the US, healthcare data has been highly fragmented, an impediment that Teladoc appears to be overcoming. Thanks to its recent acquisition of Livongo, Teledoc has strengthened its data and analytical capabilities. IOVA declined after the company disclosed a six-month delay in its Biologics License Application (BLA), a commercialization application submitted to the U.S. Food and Drug Administration (FDA), in response to feedback on its potency assays. Additionally, Iovance disclosed that Maria Fardis, CEO for the last five years, would be leaving to pursue other opportunities. Frederick Vogt, General Counsel, has stepped in as interim CEO. ARK believes that tumor infiltrating lymphocytes (TILs) are the most compelling therapies for solid tumors and that Iovance has the most robust TIL data set.

Among the top contributors were Intellia Therapeutics (NTLA) and CareDx (CDNA). Intellia Therapeutics made history by presenting the first data of a CRISPR Cas9 in vivo gene editing therapy in patients with Hereditary Transthyretin Amyloidosis (hATTR). Until now, patients with hATTR faced limited treatment options. Intellia’s data highlighted that editing the TTR gene could result in a one-time treatment, eliminating the need for chronic therapy, signifying that one-time cures are possible. CDNA responded positively to CareDx’s acquisition of Transplant Hero, a mobile application provider focused on the needs of transplant patients. CareDx is modernizing transplant medicine with deep genomics expertise, machine learning, and longitudinal patient management.

ARK Fintech Innovation ETF (ARKF)

The ARK Fintech Innovation ETF (ARKF) underperformed the broad-based market indexes during the quarter. Among the top detractors were Silvergate Capital (SI) and Coinbase Global (COIN). Silvergate Capital shares traded down, primarily in response to a sharp drop in the prices of bitcoin and other cryptocurrencies. COIN detracted from performance for reasons discussed above.

Among the top contributors were Shopify (SHOP) and Sea (SE). SHOP appreciated in response to the continued shift to e-commerce, expanded partnerships with Facebook and Google that will increase Shop Pay’s access to merchants, and the strategic acquisition of an augmented reality platform, Primer. Sea’s self-developed global hit game, Free Fire, continued to impress, while its e-commerce platform, Shopee, grew average daily orders significantly.

ARK Space Exploration & Innovation ETF (ARKX)

The ARK Space Exploration & Innovation ETF (ARKX) underperformed the broad-based market indexes during the quarter. Among the top detractors were Komatsu (6301-JP) and Virgin Galactic Holdings (SPCE). Komatsu suffered from a broader selloff in construction and mining stocks. ARK believes that Komatsu will leverage its position as a top construction and mining equipment supplier and become a leader in autonomous equipment. SPCE detracted from performance for reasons discussed above.

Among the top contributors were Nvidia (NVDA) and Raven Industries (RAVN). NVDA appreciated in response to stronger than expected first quarter earnings and guidance, a higher probability that it will succeed in acquiring ARM, sell-side upgrades, and a strong move in semiconductor stocks generally. During Investor Day, Nvidia also unveiled the Omniverse Platform, its Grace CPU, and an AI LaunchPad. In June, CNH announced an agreement to acquire Raven for a significant premium. Raven Industries makes precision agriculture and high altitude balloons, while CNH is the second largest agricultural equipment maker globally.

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 ROKU and NTLA, for reasons discussed above. Detracting from performance were TDOC and COIN, for reasons discussed above.

The 3D Printing ETF (PRNT)

ARK’s self-indexed ETFs, The 3D Printing ETF (PRNT) and the ARK Israel Innovation Technology ETF (IZRL), appreciated during the quarter. PRNT underperformed relative to the broad-based market indexes. ExOne (XONE) was the largest detractor after a broadbased selloff in the 3D printing space. ExOne is a leader in binder jetting 3D printing, an area on which its 3D printing peers like HP and Desktop Metal are focusing increasingly. DDD was the top contributor for reasons discussed above.

ARK Israel Innovation Technology ETF (IZRL)

IZRL underperformed relative to the broad-based market indexes. Evogene (EVGN) was the largest detractor from performance as biotech sold off broadly. The company is engaged in research and development to improving crop quality, productivity, and economics in the food, feed, and biofuel industries. InMode (INMD) was the top contributor, as Barclays released a favorable report on the medical device industry, including a positive outlook for InMode.

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

ARKQ
$0.59
ARKW Icon

ARK Next Generation Internet ETF

ARKW
-$0.92
ARKG Icon

ARK Genomic Revolution ETF

ARKG
-$0.07
ARKK Icon

ARK Innovation ETF

ARKK
-$0.48
PRNT Icon

The 3D Printing ETF

PRNT
$0.21
IZRL Icon

ARK Israel Innovative Technology ETF

IZRL
-$0.31
ARKF Icon

ARK Fintech Innovation ETF

ARKF
-$0.08
ARKX Icon

ARK Space Exploration & Innovation ETF

ARKX
$0.18
See All

ARK Trade Notifications

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