Ark Invest ETFs Power Active Investing Growth

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Actively managed ETFs, which just make up for a tiny fraction i.e. 3.5% of the $5.7 trillion industry, have been growing steadily. These ETFs pulled in a record of more than $55 billion capital last year and $17.5 billion so far this year, bringing their AUM to $200 billion — almost double last year’s at the same time, according to data compiled by Bloomberg.

Most of the growth was driven by the products of Ark Investment Management, whose assets soared to about $50 billion from $3.6 billion a year ago. Five out of the seven ETFs managed by ARK Invest are actively managed. The most popular is Ark Innovation ETF (ARKK - Free Report), which has gathered $4.2 billion in assets so far this year and notched another record week of inflows.

This was followed by inflows of $3 billion in ARK Genomic Revolution ETF (ARKG - Free Report), $1.3 billion in ARK Next Generation Internet ETF (ARKW - Free Report), $1.2 billion in ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report), and $880 million in ARK Fintech Innovation ETF (ARKF - Free Report).

These ARK Invest’s ETFs are designed to capture long-term appreciation and alpha uncorrelated to traditional indices or managers. They provide exposure to aggressive growth through a fund rather than individual stocks and complement traditional broad index-based value or growth strategies.

Let’s delve into the characteristics of each of these five funds:

ARKK

ARKK invests in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research related to the areas of DNA technologies (Genomic Revolution), industrial innovation in energy, automation and manufacturing (Industrial Innovation), the increased use of shared technology, infrastructure and services (Next Generation Internet), and technologies that make financial services more efficient (Fintech Innovation).

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