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ARK Next Generation Internet ETF (ARKW)
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Upturn Advisory Summary
01/14/2025: ARKW (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type ETF | Historic Profit 42.41% | Avg. Invested days 37 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 3.0 | ETF Returns Performance 5.0 |
Profits based on simulation | Last Close 01/14/2025 |
Key Highlights
Volume (30-day avg) 244516 | Beta 2.08 | 52 Weeks Range 64.00 - 120.39 | Updated Date 01/22/2025 |
52 Weeks Range 64.00 - 120.39 | Updated Date 01/22/2025 |
AI Summary
Overview of ARK Next Generation Internet ETF (ARKW)
Profile:
ARKW is an actively managed ETF that invests in publicly traded companies that are deemed to benefit from the development of next-generation internet technologies, such as artificial intelligence (AI), cloud computing, and blockchain technology. The ETF focuses on disruptive innovation and long-term growth potential rather than current profitability. ARKW invests primarily in US-listed companies and allocates approximately 80% of its assets to the technology sector.
Objective:
The primary investment goal of ARKW is to maximize long-term capital appreciation by investing in companies that are positioned to benefit from the growth of the next-generation internet.
Issuer:
ARK Investment Management LLC is the issuer of ARKW. Founded in 2014, ARK is a relatively young but rapidly growing asset management firm known for its disruptive and innovative investment strategies. The firm's founder and CEO, Cathie Wood, is a highly respected figure in the financial industry with a strong track record in identifying emerging technology trends.
Market Share:
ARKW holds a market share of approximately 6% within the Technology Internet ETF category.
Total Net Assets:
As of November 10, 2023, ARKW has approximately $7.4 billion in total net assets.
Moat:
ARKW's competitive advantages include:
- Unique and differentiated investment strategy: ARKW focuses on disruptive innovation and long-term growth potential, setting it apart from traditional technology ETFs that may hold more established companies.
- Experienced and visionary management team: The ARK team, led by Cathie Wood, has a strong track record in identifying and investing in emerging technologies.
- Active management: ARKW is actively managed, allowing the portfolio managers to adapt to changing market conditions and identify new investment opportunities.
Financial Performance:
ARKW has historically delivered strong returns, outperforming the broader market and its benchmark index. However, it is important to note that past performance is not indicative of future results.
Benchmark Comparison:
Over the past three years, ARKW has outperformed the S&P 500 Index and the Nasdaq-100 Index.
Growth Trajectory:
The next-generation internet sector is expected to experience significant growth in the coming years, driven by the increasing adoption of disruptive technologies. This bodes well for ARKW's future growth prospects.
Liquidity:
ARKW has a high average trading volume, making it a relatively liquid ETF. The bid-ask spread is also tight, indicating low transaction costs.
Market Dynamics:
Several factors can affect ARKW's market environment, including:
- Economic growth: A strong economy can lead to increased investment in technology companies, benefiting ARKW.
- Technological advancements: Breakthroughs in AI, cloud computing, and blockchain technology can positively impact ARKW's holdings.
- Regulatory environment: Changes in government regulations can impact the growth of the next-generation internet sector.
Competitors:
- Invesco QQQ Trust (QQQ): 90% market share
- iShares Expanded Tech Sector ETF (IGV): 3% market share
Expense Ratio:
ARKW's expense ratio is 0.75% per year.
Investment Approach and Strategy:
- Strategy: ARKW does not track a specific index but actively selects companies based on its thematic investment approach.
- Composition: The ETF primarily holds stocks of companies involved in the next-generation internet sector, including AI, cloud computing, and blockchain technology.
Key Points:
- ARKW offers investors exposure to the high-growth next-generation internet sector.
- The ETF has a strong track record and is managed by an experienced team.
- ARKW is actively managed, allowing it to adapt to changing market conditions.
- The ETF has a relatively high expense ratio compared to some of its peers.
Risks:
- Volatility: ARKW can be more volatile than the broader market due to its focus on growth stocks.
- Market risk: ARKW is exposed to the risks associated with the technology sector, which can be sensitive to economic conditions.
- Concentration risk: The ETF has a concentrated portfolio, meaning that a small number of holdings account for a large portion of its assets.
Who Should Consider Investing:
ARKW is suitable for investors who:
- Have a long-term investment horizon.
- Are comfortable with high volatility.
- Believe in the growth potential of the next-generation internet sector.
Fundamental Rating Based on AI:
Rating: 8/10
Justification: ARKW scores highly on factors such as financial performance, market position, and future prospects. The ETF has a strong track record, is actively managed by an experienced team, and is positioned to benefit from the growth of the next-generation internet sector. However, investors should be aware of the risks associated with the ETF, including its high volatility and concentration risk.
Resources and Disclaimers:
- ARK Investment Management LLC: https://ark-invest.com/
- Yahoo Finance: https://finance.yahoo.com/quote/ARKW/
- Morningstar: https://www.morningstar.com/etfs/arkw/arkw
Disclaimer:
This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
About ARK Next Generation Internet ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund is an actively-managed exchange-traded fund (ETF) that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are relevant to the fund's investment theme of next generation internet. Under normal circumstances, substantially all of the fund's assets will be invested in equity securities, including common stocks, partnership interests, business trust shares and other equity investments or ownership interests in business enterprises. The fund is non-diversified.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.