For investors seeking momentum, ARK Genomic Revolution Multi-Sector ETF (ARKG - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up nearly 46.2% from its 52-week low price of $23.41/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.
ARKG in Focus
This is an actively managed ETF focusing on companies that are expected to gain from improvement of the quality of human and other life by integrating technological and scientific developments in genomics into their business.
About 25.2% of the fund goes to gene therapy followed by 16% in targeted therapeutics, 15.5% in instrumentation, 14.8% in beyond DNA and 11.3% in bioinformatics.The product charges 75 bps in fees (see all Health Care ETFs here).
Why the Move?
This is a fast-growing industry. The fund’s factsheet shows “by 2022, the cost of sequencing the DNA of a full human genome should drop below $100.” This shows the extent of research and advancement in this field.
More Gains Ahead?
It seems that the fund will perform decently in the near term given a positive weighted alpha of 48.80.
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