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Should You Invest in the ARK Web x.0 ETF (ARKW)?

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If you're interested in broad exposure to the Technology - Internet segment of the equity market, look no further than the ARK Web x.0 ETF (ARKW - Free Report) , a passively managed exchange traded fund launched on 09/30/2014.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Internet is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.

Index Details

The fund is sponsored by Ark Investment Management. It has amassed assets over $675.90 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Internet segment of the equity market.

This ETF is active and does not track a benchmark.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.75%, making it one of the most expensive products in the space.

It has a 12-month trailing dividend yield of 0.22%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Tesla Inc (TSLA - Free Report) accounts for about 6.41% of total assets, followed by Tencent Holdings Ltd-Uns Adr (TCEHY - Free Report) and Nvidia Corp (NVDA - Free Report) .

The top 10 holdings account for about 43.29% of total assets under management.

Performance and Risk

Year-to-date, the ARK Web x.0 ETF has added roughly 24.33% so far, and is up about 44.53% over the last 12 months (as of 09/11/2018). ARKW has traded between $39.57 and $59.90 in this past 52-week period.

The ETF has a beta of 1.24 and standard deviation of 21.35% for the trailing three-year period, making it a medium risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.


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ARK-NEXTGEN NET (ARKW) - free report >>

Tencent Holding Ltd. (TCEHY) - free report >>

Tesla, Inc. (TSLA) - free report >>

NVIDIA Corporation (NVDA) - free report >>