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The first quarter of 2021 has been quite satisfactory amid the pandemic. Notably, the Dow Jones Industrial Average and the S&P 500 surged 7.8% and 5.8%, respectively, in the period, witnessing their fourth straight positive quarter (per a CNBC article).
The quarter kept investors busy with highlights like President Joe Biden’s swearing-in ceremony, the passage ofthe $1.9-trillion coronavirus relief package, Fed decision to maintain rates near zero until 2023, the Reddit mania which completely surprised Wall Street players, accelerated coronavirus vaccine distributions and reopening of global economies. Notably, the central bank raised its economic growth outlook considering the vaccine and stimulus optimism and it also expects higher inflation this year during the quarter. However, rising 10-year Treasury Note yields along with the tax hike worries at times kept investors on the edge.
The benchmark U.S. treasury yield went up to 1.73% on Mar 29, 2021, from 0.93% at the start of the year. It is a known fact that rising interest rates disproportionately affect high-growth technology players. Cathie Wood’s revolutionary ARK Investment Management that delivered a spectacular performance in the pandemic-stricken 2020 faced the U.S. treasury yield obstacle in the first quarter. Its focus on companies gaining from ‘‘disruptive innovation’’ has been claimed as the recipe for success. Notably, ARK defines ‘‘disruptive innovation’’ as the introduction of a technologically-enabled new product or service that potentially changes the way the world functions.
Markedly, amid the coronavirus pandemic, expanding digitization and heightening dependency on the Internet owing to some new normal trends like online shopping, work from home, digital payments, digitization of healthcare, growing favor for video gaming and many more lent support to ARK’s investment strategy.
However, Nate Geraci, president of investment-advisory firm the ETF Store in Kansas, had once said that “If the assumption is we’ll get an economic recovery as the Covid vaccine is deployed and things start getting back to normal, I would expect a rotation into value stocks, and the ARK strategies are clearly more growth-oriented. Expecting the same type of performance we saw in 2020 moving forward is unrealistic,” according to a BloombergQuint article.
Although, ARK Invest’s performance has not been satisfactory since the start of the year, it has still seen inflows. The ARK Innovation ETF (ARKK) has seen about $5.5 billion in new inflows so far in 2021, according to Morningstar data (per a Reuters article). In fact, the three other ARK funds witnessed inflows that gained positions among the top 10 ranks, per Morningstar.
Top-Performing ARK Invest ETFs of Q1
Here we highlight the top-performing ARK Invest ETFs of first-quarter 2021:
The fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Total 3D-Printing Index, which is designed to track the price movements of stocks of companies involved in the 3D printing industry.
PRNT holds 49 stocks in its basket. It charges 0.66% in expense ratio and has accumulated $563 million in its asset base. The fund trades in an average three-month trading volume of about 776,000 shares (read: 5 Hot Tech ETFs to Tap on Beaten Down Prices).
ARKQ is an actively-managed ETF that is focused on and is expected to substantially benefit from the development of new products or services, technological improvements and advancements in scientific research related to, among other things, energy, automation and manufacturing, materials, and transportation. Tesla, here also, occupies the top spot.
ARK Israel Innovative Technology ETF (IZRL - Free Report) — up 7.5%
The fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the ARK Israeli Innovation Index, which is designed to track the price movements of exchange-listed Israeli companies whose main business operations are causing disruptive innovation in the areas of genomics, health care, biotechnology, industrials, manufacturing, the Internet or information technology.
IZRL holds 43 stocks in its basket. It charges 0.49% in expense ratio and has accumulated $342.1 million in its asset base. The fund trades in an average three-month trading volume of 411,000 shares.
ARKF is again an actively-managed ETF that seeks to achieve its investment objective by investing under normal circumstances, primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the fund’s investment theme of Fintech innovation.
ARKF holds 47 stocks in its basket. It charges 0.75% in expense ratio and has accumulated $3.99 billion in its asset base. The fund trades in an average three-month trading volume of 3.4 million shares (read: Thematic Investing on the Rise: ARK ETFs Leading the Pack).
ARK Next Generation Internet ETF (ARKW - Free Report) — up 2.5%
Another actively-managed ETF includes companies that are focused on and anticipated to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the Internet of Things, and social distribution and media.
ARKW holds 53 stocks in its basket. It charges 0.79% in expense ratio and has accumulated $6.87 billion in its asset base. The fund trades in an average three-month trading volume of 2.0 million shares (read: 5 Big ETF Stories of 2020 Worth Watching in 2021).
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How Has Q1 Been for Cathie Wood's ARK ETFs?
The first quarter of 2021 has been quite satisfactory amid the pandemic. Notably, the Dow Jones Industrial Average and the S&P 500 surged 7.8% and 5.8%, respectively, in the period, witnessing their fourth straight positive quarter (per a CNBC article).
The quarter kept investors busy with highlights like President Joe Biden’s swearing-in ceremony, the passage ofthe $1.9-trillion coronavirus relief package, Fed decision to maintain rates near zero until 2023, the Reddit mania which completely surprised Wall Street players, accelerated coronavirus vaccine distributions and reopening of global economies. Notably, the central bank raised its economic growth outlook considering the vaccine and stimulus optimism and it also expects higher inflation this year during the quarter. However, rising 10-year Treasury Note yields along with the tax hike worries at times kept investors on the edge.
The benchmark U.S. treasury yield went up to 1.73% on Mar 29, 2021, from 0.93% at the start of the year. It is a known fact that rising interest rates disproportionately affect high-growth technology players. Cathie Wood’s revolutionary ARK Investment Management that delivered a spectacular performance in the pandemic-stricken 2020 faced the U.S. treasury yield obstacle in the first quarter. Its focus on companies gaining from ‘‘disruptive innovation’’ has been claimed as the recipe for success. Notably, ARK defines ‘‘disruptive innovation’’ as the introduction of a technologically-enabled new product or service that potentially changes the way the world functions.
Markedly, amid the coronavirus pandemic, expanding digitization and heightening dependency on the Internet owing to some new normal trends like online shopping, work from home, digital payments, digitization of healthcare, growing favor for video gaming and many more lent support to ARK’s investment strategy.
However, Nate Geraci, president of investment-advisory firm the ETF Store in Kansas, had once said that “If the assumption is we’ll get an economic recovery as the Covid vaccine is deployed and things start getting back to normal, I would expect a rotation into value stocks, and the ARK strategies are clearly more growth-oriented. Expecting the same type of performance we saw in 2020 moving forward is unrealistic,” according to a BloombergQuint article.
Although, ARK Invest’s performance has not been satisfactory since the start of the year, it has still seen inflows. The ARK Innovation ETF (ARKK) has seen about $5.5 billion in new inflows so far in 2021, according to Morningstar data (per a Reuters article). In fact, the three other ARK funds witnessed inflows that gained positions among the top 10 ranks, per Morningstar.
Top-Performing ARK Invest ETFs of Q1
Here we highlight the top-performing ARK Invest ETFs of first-quarter 2021:
The 3D Printing ETF (PRNT - Free Report) — up 26.7% in Q1
The fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Total 3D-Printing Index, which is designed to track the price movements of stocks of companies involved in the 3D printing industry.
PRNT holds 49 stocks in its basket. It charges 0.66% in expense ratio and has accumulated $563 million in its asset base. The fund trades in an average three-month trading volume of about 776,000 shares (read: 5 Hot Tech ETFs to Tap on Beaten Down Prices).
ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) — up 11.5%
ARKQ is an actively-managed ETF that is focused on and is expected to substantially benefit from the development of new products or services, technological improvements and advancements in scientific research related to, among other things, energy, automation and manufacturing, materials, and transportation. Tesla, here also, occupies the top spot.
ARKQ holds 47 stocks in its basket. It charges 0.75% in expense ratio and has accumulated $3.19 billion in its asset base (read: Tesla ETFs to Tap Robust Q1 Deliveries, Biden EV's Plan).
ARK Israel Innovative Technology ETF (IZRL - Free Report) — up 7.5%
The fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the ARK Israeli Innovation Index, which is designed to track the price movements of exchange-listed Israeli companies whose main business operations are causing disruptive innovation in the areas of genomics, health care, biotechnology, industrials, manufacturing, the Internet or information technology.
IZRL holds 43 stocks in its basket. It charges 0.49% in expense ratio and has accumulated $342.1 million in its asset base. The fund trades in an average three-month trading volume of 411,000 shares.
ARK Fintech Innovation ETF (ARKF - Free Report) — up 5.9%
ARKF is again an actively-managed ETF that seeks to achieve its investment objective by investing under normal circumstances, primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the fund’s investment theme of Fintech innovation.
ARKF holds 47 stocks in its basket. It charges 0.75% in expense ratio and has accumulated $3.99 billion in its asset base. The fund trades in an average three-month trading volume of 3.4 million shares (read: Thematic Investing on the Rise: ARK ETFs Leading the Pack).
ARK Next Generation Internet ETF (ARKW - Free Report) — up 2.5%
Another actively-managed ETF includes companies that are focused on and anticipated to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the Internet of Things, and social distribution and media.
ARKW holds 53 stocks in its basket. It charges 0.79% in expense ratio and has accumulated $6.87 billion in its asset base. The fund trades in an average three-month trading volume of 2.0 million shares (read: 5 Big ETF Stories of 2020 Worth Watching in 2021).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>