Rize ETF Joins the ARK Invest Family

Rize ETF is Europe’s leading innovator and respected provider of thematic and sustainable investing. As of August 31, 2023, Rize ETF managed $452m in AUM across 11 UCITS ETFs classified as SFDR Article 8 or 9, authorised in Dublin and marketed throughout Europe. Founded in 2019 by ETF industry veterans, Stuart Forbes, Rahul Bhushan, Jason Kennard and Anthony Martin, Rize ETF has become known across Europe for its innovative approach to building high quality, research-led and purpose-built thematic and sustainable index ETFs. Prior to Rize ETF, the Founders were integral to the building out of the European UCITS ETF business for ETF Securities, which was acquired by Legal & General in 2018. Their collective expertise covers the full lifecycle of ETF issuance from product strategy and index development to legal and regulatory, tax, portfolio management and operations, capital markets, research and marketing and distribution.

ARK Invest (“ARK”) is a renowned US-based investment firm, founded by CEO/CIO Cathie Wood, specialising in investments that drive disruptive innovation. At the core of their philosophy is the principle of “investing on the right side of change”, reflecting their unwavering commitment to pioneering and transformative strategies. Echoing Rize ETF’s own ethos, ARK places a high emphasis on a meticulous, research-driven approach. This dedication has earned them notable accolades, particularly for their active ETFs spotlighting five innovation platforms, including Artificial Intelligence, Robotics, Blockchain Technology, Energy Storage and Multi-Omics Sequencing. Additionally, ARK offers a multi-platform Innovation ETF, a testament to their expansive and diversified innovative focus.

ARK has discerned Rize ETF’s outstanding position as a leader in European thematic and sustainable investing. Accordingly, this acquisition is a strategic move designed to cater to European demand for ARK’s ETFs. At the heart of both ARK and Rize ETF lies a deep commitment to research. Rize ETF stands to benefit as ARK’s distinguished research in disruptive innovation augments and elevates Rize ETF’s existing capability to a level truly unique in the European ETF market which ensures that our enhanced platform can deliver an even more robust and future-ready investment research experience for European clients.

The current name and brand of Rize ETF will be phased out, as the platform transitions into “ARK Invest Europe,” a division of ARK Invest Limited LLC and the hub for ARK’s expansion into Europe, United Kingdom and new markets globally. The strong cultural alignment between ARK Invest and Rize ETF was a key motivator for both Cathie and the Rize Founders in wanting to adjoin the two firms and seize upon the opportunities to grow bigger together. Accordingly, the essence of Rize ETF — our dedication to thematic and sustainable investing and our deep-rooted expertise in building pioneering Article 8 and 9 sustainable investment frameworks — will stay central to our new collective identity. We shall continue to leverage our unique sustainability programme to expand our Article 8 and 9 ETF range in Europe, noting that we launched two additional Article 9 sustainable thematic ETFs in late August. However, we will of course, from time to time, undertake regular assessments of our product range to ensure alignment with market demands and investor needs. Current investors in Rize ETFs do not need to take any action with regard to their existing positions.

This transaction marks a significant milestone in ARK’s global expansion strategy and allows the firm to bring its suite of innovation-based active equity ETFs to investors across Europe, United Kingdom, and new markets globally. The transaction allows ARK to establish a European UCITS suite of its ETF strategies along with the proven distribution excellence of Rize ETF. It also incorporates Rize ETF’s valuable and differentiated impact strategies to be distributed by ARK across a global footprint. We are planning to launch several of ARK actively-managed strategies in the European markets by the end of the year.

The timing was driven by recognising our shared strengths and passion for innovation, the dynamic shifts in the investment landscape and Europe’s growing appetite for active ETFs. The resulting synergy underscored the perfect moment to cement our union.

The acquisition of Rize ETF by ARK Invest is strategically aligned as both firms share a common focus on the future and thematic investing. The expected synergies primarily revolve around combining ARK’s focus on disruptive innovation and expertise in active management of ETFs with Rize ETF’s experience in providing investment solutions that align with global megatrends. Together, we aim to create innovative investment products that cater to a broader range of investors.

The current name and brand of Rize ETF will be phased out, as the platform transitions into “ARK Invest Europe,” a division of ARK Invest Limited LLC and the hub for ARK’s expansion into Europe, UK and new markets globally. This transition advances our shared commitment to offer high quality thematic and sustainable thematic investment solutions to our global investor audience across both the self-index and actively-managed formats. ARK Invest Europe will uphold the high standards of investment research, portfolio management and client service for which ARK is known, all while tapping into Rize ETF’s deep thematic and sustainable expertise and strong client relationships in the European ETF market.

While ARK Invest Europe will be a division of ARK Invest Limited LLC, a separate legal entity under common control with ARK Invest’s US registered investment adviser, ARK will work to integrate Rize ETF and its employees fully into ARK’s existing corporate structure. The Rize ETF team will be focused primarily on growing the ARK Invest Europe operations.

The leadership of Rize ETF are committed to becoming key members of the ARK team and all ARK members are excited to welcome them. The Rize ETF founders, which have been instrumental in Rize ETF’s growth and success, will become integral members of ARK Invest Europe in order to maintain consistency and reliability for all existing and future investors.

We are exploring potential synergies between and among ARK’s existing ETF suite in the U.S. and Rize ETFs’ current product suite. Together, we intend to bolster research and deliver enhanced insights and value creation to our clients.

Rize ETF has created a range of ETFs focused on investing in the world’s most compelling megatrends, both thematic and sustainable, with a view to provide investors with the choice and flexibility they need to benefit from the structural changes unfolding around them. Both Rize ETF and ARK are steadfast proponents of a transparent, research-driven investment methodology. This union melds Rize ETF’s prowess in thematic and sustainable investing with ARK’s deep-rooted research and actively managed portfolios focused on disruptive innovation. We anticipate ARK’s research and insights to significantly benefit Rize ETF’s European clients, while emphasizing the need to position investment portfolios on the right side of technological change.

Yes, this is a consolidation of two highly innovative teams, and one of the key strategic benefits of that union is to leverage the unique skills and capabilities of ARK and Rize to expand out the international product range.

While Rize ETF has an established reputation in index replicating ETF strategies, ARK is celebrated for its active ETF prowess. Both approaches have distinct advantages, catering to diverse investor needs. As we embrace the expertise of ARK in active ETFs, our commitment to Rize ETF’s existing index suite will remain steadfast. This union synergises the strengths of both index and active ETFs.

At Rize ETF, sustainable investing is not just a part of our strategy—it sits at its core. We and ARK both firmly believe that innovation is key to a sustainable transition. Our union amplifies this belief, marrying our foundational focus on sustainability with the collective conviction that disruptive innovation is instrumental in ushering in a sustainable future. With our combined strengths, we’re poised to spotlight the forefront of transformative environmental and social innovation, ensuring our portfolios capture the very essence of sustainable progress.

Our joint vision is one of convergence. We believe that the future of investing lies at the intersection of sustainability and disruption. Let’s look at some examples. In energy, the transition is powered by renewable energy sources and storage. Transport is undergoing a revolution with electric vehicles and ride-hailing. Meanwhile, the food sector is witnessing innovations through precision agriculture and cellular agriculture. Note that all three of these are “clean” disruptions, as evidenced by the examples. With our combined expertise, we’re not only navigating the future of investing but actively steering towards a horizon where progress and prosperity align seamlessly with the principles of sustainability.

With the backing of ARK’s global strength and resources, we are now better positioned than ever to pursue our ambitions but under our new platform, ARK Invest Europe. This not only solidifies our presence in Europe but also primes us for global expansion. It means that we can access deeper research, roll out more innovative products and enhance our market presence without constraint. In essence, this union allows us to seize every opportunity and fast-track our growth plans, ensuring we can realise our full potential both in Europe and globally.