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Technology ETF (ARKW) Hits New 52-Week High

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For investors looking for momentum, Ark Web X.0 ETF ARKW is probably on your radar now. The fund just hit a 52-week high of $29.32. Shares of ARKW are up roughly 45.12% from their 52-week low price of $20.10/share.

But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea on where it might be headed:

ARKW in Focus

ARKW is an actively managed fund, providing significant exposure to Internet technology companies. It has key holdings in Information Technology, Consumer Discretionary, and Health Care sectors, with over 90% allocation to them. The fund charges 75 basis points in fees. It has around 51.3% allocated to its top 10 holdings. Athenahealth Inc ATHN, Amazon Inc AMZN, Netflix Inc (NFLX - Free Report) , and Tesla Motors Inc TSLA hold the top four positions with 8.62%, 7.67%, 5.15%, and 4.97% allocation, respectively. (See all the Technology ETFs here).

Why the Move?

One of the fund’s top holdings, Tesla just crossed General Motors to become the most valuable carmaker in the U.S. Tesla’s stock closed up over 3% to end at $312.39 a share on Tuesday, April 10, 2017. It hit a market value of $50.84 billion, crossing GM’s $50.79 billion. Even though Tesla sold a meager 76,000 cars last year compared to GM’s 10 million, investors are betting on Tesla’s future potential.

More Gains Ahead?

Amazon is surging due to its expansion into the Middle East while Athenahealth continues to rise due to the failure of Trump’s healthcare bill. However, there is still uncertainty regarding President Trump’s policy implementation and his take on alternatives’ companies like Tesla. So it is hard to get a handle on the fund’s future returns one way or another. However, the ETF has a weighted alpha of 38.3 and a low 14-day standard deviation of 5.7%. So there is definitely some promise for those who want to ride this surging ETF a little further.

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