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Ark Investment Management founder Cathie Wood has been dominating headlines lately for seeing massive inflows into her ETF lineup. In fact, it has managed a spot among the top 10 issuers in the $5.5-trillion ETF industry, thanks to its solid asset gain in 2020, per a BloombergQuint article.
In mid-January, Ark Investment Management oversaw about $41.5 billion in ETF products compared with $39.7 billion for WisdomTree, according to data compiled by Bloomberg. Despite taking a beating this year, Ark Investment’s star product Ark Innovation ETF (ARKK - Free Report) has gained 166.6% in the past year. Meanwhile, ARK Next Generation Internet ETF (ARKW - Free Report) has added about 178.8%.
No wonder, Cathie Wood, famous for the success of Ark Investment’s winning products, has found a huge fan following. So, many would like to follow her vision, which says that digital wallets and genomics will be the next two biggest disruptive trends after Tesla and electric vehicles, as quoted on CNBC.
Digital Wallets
Wood told CNBC, “we really think that these digital wallets and two-sided market places, merchants and consumers...are going to usurp a lot of the role the banks play today.” Wood is pretty bullish on names like Square (SQ) and PayPal (PYPL), which rule the digital wallet space. Square is the second-largest holding in Ark Innovation, making up more than 7% of the ETF. WeChat Pay and AliPay are the two key players in China, per Wood.
Growing penetration of smartphones and new-normal trends which call for more stress on digital-only technology in many places will support the mobile wallet market. Mobile Wallet Market size topped $100 billion in 2019 and is on its way to register gains at more than 15% CAGR between 2020 and 2026, per gminsights.com. There is a pureplay ETF on this arena called ETFMG Prime Mobile Payments ETF (IPAY - Free Report) .
Genomics
Another disruptive area that Wood sees great potential in is genomics. The healthcare landscape has been benefiting from emergence in genomics which is aiding mankind to decode the function, structure, evolution, editing and mapping of genomes.
Per Wood, so far, several healthcare decisions have been made on the basis of guesses or experiences. “Now we’re going to have the data.” Genomics would prove to be path-breaking in curing diseases like cancer. The global genome editing/genome engineering market size is projected to touch $11.2 billion in 2025 from $5.1 billion in 2020, at a CAGR of 17.0 %, per a marketsandmarkets.com article.
ARK Genomic Revolution ETF ARKG), Invesco Dynamic Biotechnology & Genome ETF (PBE - Free Report) , Global X Genomics & Biotechnology ETF (GNOM) and iShares Genomics Immunology and Healthcare ETF (IDNA) are a few ETFs that could be tapped to make the most of this boom.
Electric Vehicles
With automation and technological breakthrough emerging rapidly, fast pickup in electric vehicles is in the cards. Tesla’s success is known to all by now. Most big-shot companies including Apple (AAPL) is also eyeing the space. Apple looks to build 100,000 vehicles annually by 2024 at the Kia plant.
General Motors announced its entry into the electric delivery vehicle business. Several electric vehicle makers and related companies have gone public in the past year through IPOs or through deals with so-called blank-check companies.
Hence, investors should keep a close watch on electric vehicle-related ETFs like Amplify Advanced Battery Metals and Materials ETF (BATT - Free Report) , Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report) , KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) and The iShares Self-Driving EV and Tech ETF (IDRV) (read: ETFs & Stocks to Bet on the EV Boom).
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Play 3 Emerging ETF Trends to Follow Cathie Wood
Ark Investment Management founder Cathie Wood has been dominating headlines lately for seeing massive inflows into her ETF lineup. In fact, it has managed a spot among the top 10 issuers in the $5.5-trillion ETF industry, thanks to its solid asset gain in 2020, per a BloombergQuint article.
In mid-January, Ark Investment Management oversaw about $41.5 billion in ETF products compared with $39.7 billion for WisdomTree, according to data compiled by Bloomberg. Despite taking a beating this year, Ark Investment’s star product Ark Innovation ETF (ARKK - Free Report) has gained 166.6% in the past year. Meanwhile, ARK Next Generation Internet ETF (ARKW - Free Report) has added about 178.8%.
No wonder, Cathie Wood, famous for the success of Ark Investment’s winning products, has found a huge fan following. So, many would like to follow her vision, which says that digital wallets and genomics will be the next two biggest disruptive trends after Tesla and electric vehicles, as quoted on CNBC.
Digital Wallets
Wood told CNBC, “we really think that these digital wallets and two-sided market places, merchants and consumers...are going to usurp a lot of the role the banks play today.” Wood is pretty bullish on names like Square (SQ) and PayPal (PYPL), which rule the digital wallet space. Square is the second-largest holding in Ark Innovation, making up more than 7% of the ETF. WeChat Pay and AliPay are the two key players in China, per Wood.
Growing penetration of smartphones and new-normal trends which call for more stress on digital-only technology in many places will support the mobile wallet market. Mobile Wallet Market size topped $100 billion in 2019 and is on its way to register gains at more than 15% CAGR between 2020 and 2026, per gminsights.com. There is a pureplay ETF on this arena called ETFMG Prime Mobile Payments ETF (IPAY - Free Report) .
Genomics
Another disruptive area that Wood sees great potential in is genomics. The healthcare landscape has been benefiting from emergence in genomics which is aiding mankind to decode the function, structure, evolution, editing and mapping of genomes.
Per Wood, so far, several healthcare decisions have been made on the basis of guesses or experiences. “Now we’re going to have the data.” Genomics would prove to be path-breaking in curing diseases like cancer. The global genome editing/genome engineering market size is projected to touch $11.2 billion in 2025 from $5.1 billion in 2020, at a CAGR of 17.0 %, per a marketsandmarkets.com article.
ARK Genomic Revolution ETF ARKG), Invesco Dynamic Biotechnology & Genome ETF (PBE - Free Report) , Global X Genomics & Biotechnology ETF (GNOM) and iShares Genomics Immunology and Healthcare ETF (IDNA) are a few ETFs that could be tapped to make the most of this boom.
Electric Vehicles
With automation and technological breakthrough emerging rapidly, fast pickup in electric vehicles is in the cards. Tesla’s success is known to all by now. Most big-shot companies including Apple (AAPL) is also eyeing the space. Apple looks to build 100,000 vehicles annually by 2024 at the Kia plant.
General Motors announced its entry into the electric delivery vehicle business. Several electric vehicle makers and related companies have gone public in the past year through IPOs or through deals with so-called blank-check companies.
Hence, investors should keep a close watch on electric vehicle-related ETFs like Amplify Advanced Battery Metals and Materials ETF (BATT - Free Report) , Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report) , KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) and The iShares Self-Driving EV and Tech ETF (IDRV) (read: ETFs & Stocks to Bet on the EV Boom).
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 >>