ARK Fintech Innovation ETF (NASDAQ:ARKF) is a fintech ETF from the popular ARK Invest led by Cathie Wood. ARK have seen crazy capital inflows recently, for better or for worse, due to their stellar performance in 2020. ARKF is actively managed, allowing managers to select and weight constituent stocks as they see fit. ARK as a whole are focused on “disruptive” companies.

finviz dynamic chart for ARKF

ARKF launched in early 2019 and has since amassed over $4 billion in assets. ARK state that the fund aims to capture “the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works.”

ARKF seeks long-term growth of capital. The fund is an actively-managed ETF that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the fund’s investment theme of financial technology (“Fintech”) innovation. A company is deemed to be engaged in the theme of Fintech innovation if it derives a significant portion of its revenue or market value from the theme of Fintech innovation, or (ii) it has stated its primary business to be in products and services focused on the theme of Fintech innovation. The fund is non-diversified.

Fund Overview

  • Net Assets 4 Billions
  • YTD Daily Total Return 4.01%
  • Yield 0.34%

Performance Overview

  • 4.01% YTD Daily Total Return
  • 53.66% 1-Year Daily Total Return

ARKF’s active management commands a higher fee of 0.75%

The geographical exposure of ARKF differs somewhat from FINX above. It’s also exposed about 65% to the U.S. but is then followed by Hong Kong (18%), Singapore (4%), and Japan (3%). Top 10 holdings differ as well. ARKF has over 10% in Square, and then holdings like Paypal, Zillow, Pinterest, and Shopify all comprise more than 3% each.

Top 10 Holdings (47.20% of Total Assets)

Name Symbol % Assets
Square Inc A SQ 10.07%
Shopify Inc A SHOP.TO 5.69%
PayPal Holdings Inc PYPL 4.69%
Sea Ltd ADR SE.SI 4.64%
Zillow Group Inc C Z 4.59% Inc ADR JD 3.80%
Twilio Inc A TWLO 3.64%
Coinbase Global Inc Ordinary Shares – Class A COIN 3.48%
MercadoLibre Inc MELI.SA 3.35%
Pinterest Inc PINS 3.25%

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