ETF TrueShares Technology, AI & Deep Learning ETF (ARKW)

Profile

Overview: ARKW is an actively managed ETF that invests in companies engaged in disruptive innovation in the technology, artificial intelligence (AI), and deep learning sectors. It seeks to provide investors with long-term capital appreciation by investing in a diversified portfolio of equity securities of domestic and foreign companies.

Target Sector: Technology, AI, and Deep Learning

Asset Allocation: Primarily equities, with a focus on growth stocks

Investment Strategy: Bottom-up stock selection based on thematic research

Objective

The primary investment goal of ARKW is to achieve long-term capital appreciation by investing in companies poised to benefit from the growth of disruptive technologies, including AI, deep learning, and robotics.

Issuer

Name: ARK Investment Management LLC

Reputation and Reliability: ARK Investment Management is a relatively young investment firm founded in 2014. However, it has gained significant recognition for its innovative investment strategies and focus on disruptive technologies. The firm has a strong track record of outperforming the market, particularly in the technology sector.

Management: Cathie Wood, the founder and CEO of ARK Investment Management, is a renowned investor with extensive experience in technology and financial markets. She is supported by a team of experienced analysts and portfolio managers.

Market Share

ARKW has a market share of approximately 0.5% in the broader technology ETF space.

Total Net Assets

As of November 10, 2023, ARKW has total net assets of approximately $9.4 billion.

Moat

ARKW's competitive advantages include:

• Unique Investment Strategy: The ETF focuses on disruptive technologies that are often overlooked by traditional investors.
• Experienced Management Team: The management team has a deep understanding of technology trends and a proven track record of success.
• Active Management: The ETF is actively managed, which allows the portfolio managers to adjust the holdings based on market conditions and identify new investment opportunities.

Financial Performance

Historical Performance: ARKW has generated strong returns since its inception in 2016. The ETF has returned over 200% since its launch, significantly outperforming the broader market.

Benchmark Comparison: ARKW has outperformed its benchmark index, the S&P 500, over the past several years.

Growth Trajectory

The technology, AI, and deep learning sectors are expected to experience significant growth in the coming years. ARKW is well-positioned to benefit from this growth, as it invests in companies at the forefront of these disruptive technologies.

Liquidity

Average Trading Volume: ARKW has an average daily trading volume of over 1 million shares, making it a relatively liquid ETF.

Bid-Ask Spread: The bid-ask spread for ARKW is typically less than 0.1%, indicating tight trading conditions.

Market Dynamics

Factors Affecting the ETF's Market Environment:

• Technological advancements: The pace of innovation in technology, AI, and deep learning is a key driver of the ETF's performance.
• Economic conditions: The overall health of the economy can impact investor sentiment and the performance of growth stocks.
• Competition: The ETF faces competition from other technology-focused ETFs and actively managed funds.

Competitors

Key competitors of ARKW include:

• Invesco QQQ Trust (QQQ): Market share of approximately 15%
• iShares Expanded Tech Sector ETF (IGV): Market share of approximately 10%
• VanEck Semiconductor ETF (SMH): Market share of approximately 5%

Expense Ratio

The expense ratio for ARKW is 0.75%.

Investment Approach and Strategy

Strategy: ARKW uses an active management approach to invest in companies that are poised to benefit from the growth of disruptive technologies.

Composition: The ETF holds a portfolio of approximately 50-60 stocks, with a focus on growth stocks in the technology, AI, and deep learning sectors.

Key Points

• Focus on disruptive technologies: ARKW invests in companies that are at the forefront of innovation in technology, AI, and deep learning.
• Active management: The ETF is actively managed, which allows the portfolio managers to adjust the holdings based on market conditions and identify new investment opportunities.
• Strong track record: ARKW has generated strong returns since its inception, outperforming the broader market and its benchmark index.
• High growth potential: The ETF is well-positioned to benefit from the long-term growth of the technology, AI, and deep learning sectors.

Risks

• Volatility: ARKW invests in growth stocks, which are typically more volatile than value stocks.
• Market risk: The ETF is subject to market risk, which means that its value can fluctuate based on overall market conditions.
• Technology risk: The ETF's performance is dependent on the success of the technology, AI, and deep learning sectors.

Who Should Consider Investing

ARKW is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with volatility.
• Believe in the growth potential of disruptive technologies.
• Seek exposure to the technology, AI, and deep learning sectors.