Active Investing

ARK Invest Europe Introduces Active UCITS ETFs

17 April 2024

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ETFs

Key Takeaways

On 18 April 2024, ARK Invest Europe (formerly Rize ETF) unveiled its first batch of actively managed UCITS ETFs, now listed on major European stock exchanges.

The new offerings include the ARK Innovation UCITS ETF, the ARK Artificial Intelligence & Robotics UCITS ETF and the ARK Genomic Revolution UCITS ETF.

These ETFs offer investors access to transformative technologies across various sectors, backed by ARK's in-depth, first-principles research, aiming for long-term capital growth.

The launch of ARK Invest Europe's ETFs provides investors with direct pathways into the transformative technologies shaping our future.

On 18 April 2024, ARK Invest Europe (formerly Rize ETF) unveiled its first batch of actively managed UCITS ETFs.

The new ETFs are now listed on the Deutsche Bӧrse Xetra, the London Stock Exchange and CBOE Amsterdam, with listing on the Borsa Italiana and the SIX Swiss Exchange due in the coming weeks.

The new offerings include the ARK Innovation UCITS ETF, the ARK Artificial Intelligence & Robotics UCITS ETF and the ARK Genomic Revolution UCITS ETF.

Innovation

The ARK Innovation UCITS ETF is designed for those looking to invest in companies that present the best risk-reward opportunities from ARK’s five innovation-based investment themes: Artificial Intelligence, Robotics, Energy Storage, Multiomic Sequencing and Public Blockchains. The ETF is backed by industry-recognised, first-principles research on technology, conducted by a team of domain experts who cross-collaborate on active stock selection.

The timing for this ETF is particularly pertinent as these converging technologies are expected to lead to significant macroeconomic shifts, potentially increasing the annualised equity return associated with disruptive innovation significantly by 2030. We project that the global equity market value tied to innovation could swell from 16% to over 60% by 2030, marking a significant shift in investment dynamics. Today’s era of technological convergence represents a revolutionary leap forward, which we believe has the potential to herald in a new age of opportunity, growth and societal advancement, and open up a new chapter in the story of human prosperity.

Key companies within this ETF include Tesla, known for its advancements in autonomous electric mobility and Coinbase, the world’s leading digital currency exchange platform.

Artificial Intelligence & Robotics

Next, the ARK Artificial Intelligence & Robotics UCITS ETF aims to invest in companies involved in artificial intelligence, autonomous technology and robotics.

The launch of ChatGPT in December 2022 truly captivated a global audience, swiftly reaching 100 million users within two months. This achievement eclipsed the growth rates of platforms like TikTok, which took a year, and YouTube and Facebook, which both took over four years, to hit the same milestone. Such rapid growth underscores AI’s expanding role in our daily lives, hinting at profound sector-wide transformations. As AI training costs plummet by 75% annually—surpassing the pace predicted by Moore’s Law—we’re at the brink of a technological affordability and accessibility revolution. This cost reduction paves the way for autonomous humanoid robots, promising a future where these machines transcend industrial use to become everyday partners and helpers. In lockstep with these advancements, autonomous vehicles are emerging as the ultimate mobile devices, promising to carry us into an era of unparalleled mobility and freedom. This evolution in AI and robotics stands as a testament to the transformative societal and economic potential on the horizon.

Notable companies within this ETF include UiPath, which specialises in Robotic Process Automation and Kratos Defense, known for its advanced defense technology.

Genomic Revolution

Lastly, the ARK Genomic Revolution UCITS ETF provides an investment avenue into companies involved in the genomic revolution.

The plummeting costs of genomic sequencing and the rise of multiomic technologies are unlocking unprecedented opportunities in healthcare. Today, our journey into the molecular fabric of life itself is transforming our approach to diseases that have long evaded cure, particularly rare genetic disorders and cancer. In 2023, the medical community achieved a milestone with the first approvals for gene editing treatments for beta thalassemia and sickle cell disease in both the United States and Europe, signalling a new dawn for patients burdened by these conditions. Meanwhile, in the UK, in 2022, a young leukaemia patient found hope through a pioneering T-cell therapy, marking another step forward in our battle against cancer.

This genomic revolution, underpinned by innovations in AI and automation, is not merely about extending the boundaries of traditional medicine; it’s about reshaping our understanding of life, health and the potential for healing on a molecular level.

The implications for patient care, biological sciences and the broader economy are profound, and we have forecasted a future where the treatment of once-intractable diseases becomes a reality for all.

The ETF features companies like Exact Sciences, which is innovating in cancer detection and CRISPR Therapeutics, a leader in gene editing technology.

The new actively managed ARK UCITS ETFs provide investors with direct pathways into the transformative technologies of our future.

Key Takeaways

Innovation

Artificial Intelligence & Robotics

Genomic Revolution

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