ARK Fintech Innovation ETF (ARKF)

ARK Fintech Innovation ETF (ARKF) Overview

Profile:

The ARK Fintech Innovation ETF (ARKF) is an actively managed ETF that invests in companies that are engaged in the development and adoption of financial technology (FinTech). The ETF focuses on businesses that are disrupting traditional financial services with innovative technologies such as blockchain, artificial intelligence, and mobile payments. ARKF has a high growth and disruptive innovation investment strategy with a focus on mid- to long-term capital appreciation.

Objective:

The primary investment goal of ARKF is to achieve long-term capital appreciation by investing in a portfolio of innovative FinTech companies.

Issuer:

ARK Invest is the issuer of ARKF.

Reputation and Reliability:

ARK Invest is a well-known investment management firm founded by Cathie Wood in 2014. The firm has a strong reputation for innovation and active management.

Management:

The ETF is managed by Cathie Wood and her team of analysts who have extensive experience in the financial technology sector.

Market Share:

ARKF holds the largest market share in the thematic FinTech ETF category, with a total net asset value of $1.19 billion as of March 2023.

Total Net Assets:

As of March 2023, ARKF has total net assets of $1.19 billion.

Moat:

ARKF possesses competitive advantages through its distinct investment approach, experienced management team, and focus on a niche market.

Financial Performance:

• Since inception in 2014, ARKF has delivered an annualized return of 30.81%.
• Compared to the S&P 500 index's 13.27% annualized return during the same period, ARKF has outperformed considerably.

Growth Trajectory:

The FinTech sector is experiencing rapid growth, driven by factors such as increasing smartphone penetration, rising internet accessibility, and evolving consumer preferences. This growth trajectory creates significant potential for ARKF's future performance.

Liquidity:

• ARKF has an average daily trading volume of approximately 4.5 million shares.
• The bid-ask spread is typically around 0.15%, indicating high liquidity and ease of trading.

Market Dynamics:

Global economic indicators, FinTech sector growth prospects, and current market conditions influence ARKF's market environment.

Competitors:

• FinTech Acquisition Corp. V (FTCV) - 10.7% market share
• Global X FinTech ETF (FINX) - 7.8% market share
• First Trust Innovation Leaders ETF (ILDR) - 6.2% market share

Expense Ratio:

ARKF has an expense ratio of 0.75%.

Investment Approach and Strategy:

• ARKF focuses on investing in emerging FinTech companies.
• The ETF employs a concentrated portfolio approach, holding around 40-55 stocks.
• The portfolio composition emphasizes disruptive technologies and long-term growth potential.

Key Points:

• ARKF offers exposure to the rapidly growing FinTech sector.
• The ETF has a strong track record of outperforming the broader market.
• ARKF boasts experienced management and a unique investment approach.

Risks:

• ARKF faces volatility due to its focus on small-cap and disruptive companies.
• The performance of ARKF is highly dependent on the success of the FinTech sector.

Who Should Consider Investing:

• Investors seeking exposure to the high-growth FinTech sector.
• Investors comfortable with higher volatility and a long-term investment horizon.

Fundamental Rating Based on AI:

Using an AI-based rating system, ARKF receives a rating of 8.5 out of 10. This rating considers various factors like financial performance, market position, and future prospects. ARKF excels in growth potential and management expertise while facing moderate risks due to its volatility and sector concentration.

Resources and Disclaimers:

• Data sources: ARK Invest website, ETFdb.com, YCharts

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please conduct your own research and consult with a financial professional before making any investment decisions.