ARK Invest is a U.S.-based asset management firm founded by Catherine D. Wood in 2014. Unlike most passive ETFs in the market, ARK stands out as one of the few firms employing an active management strategy within the ETF space, having launched its first actively managed ETF as early as 2014. The firm is best known for its distinct investment perspective—focused on disruptive innovation—to capture growth opportunities driven by technology and future trends. ARK is also regarded as one of the early trailblazers in actively managed ETFs, helping pave the way for their rapid development. Its investment strategy emphasizes “disruptive innovation,” including robotics, energy storage, DNA sequencing, artificial intelligence, and blockchain technology.
Origins of ARK Invest
In 2014, Cathie Wood founded ARK Invest, believing that traditional asset managers were too conservative and missing out on the vast potential of disruptive innovation. As a result, she abandoned the conventional diversified investment approach and instead chose to concentrate capital in a select few high-potential tech companies, confident that such investments could generate significant long-term returns.
To achieve her investment goals, Wood rejected the typical passive ETF model and adopted an active approach to better capture outsized market opportunities. Her research methodology follows a two-tier process: first, a top-down analysis to identify global trends and set thematic boundaries, followed by bottom-up stock selection to handpick companies aligned with her disruptive innovation thesis.
Pandemic-Era Boom Turned ARK into a Market Darling
From 2020 to 2021, during the height of the COVID-19 pandemic, ARK’s ETFs—particularly ARKK—became standout performers. Surging demand for tech-driven solutions during lockdowns fueled the rapid rise of ARK’s top holdings such as Zoom, Teladoc, and Shopify. These companies thrived in the remote economy, delivering stellar returns.
ARK successfully packaged “tech innovation” into a thematic fund offering, giving investors a focused exposure to the future of technology—aligning with their aspirations for transformative progress. The firm’s assets under management (AUM) grew rapidly, not just due to strong short-term performance but also because it tapped into the market’s prevailing optimism about technology.
However, post-pandemic, most ARK funds failed to sustain their explosive growth. As global economies reopened and normalcy returned, many of the companies that had surged during the pandemic began facing revenue headwinds. The market rotated away from speculative innovation plays back to more stable investments. Consequently, ARK’s fund performance cooled, and AUM shrank by more than half, with the firm slowly losing its spotlight.
Portfolio Overview
ARK Invest offers a range of products including ETFs, Separately Managed Accounts (SMA), and UCITS (for European investors). The actively managed ETF lineup is shown below:
| Fund Name | Launch Date | AUM | Expense Ratio | Focus |
|---|---|---|---|---|
| ARKF (ARK Fintech Innovation ETF) | 02/04/2019 | $1.36B | 0.75% | Targets innovation and growth in financial technology. |
| ARKG (ARK Genomic Revolution ETF) | 10/31/2014 | $1.01B | 0.75% | Focuses on breakthroughs in biotechnology and genomics. |
| ARKK (ARK Innovation ETF) | 10/31/2014 | $8.04B | 0.75% | Covers disruptive innovation across multiple industries. |
| ARKQ (ARK Autonomous Technology & Robotics ETF) | 09/30/2014 | $1.25B | 0.75% | Invests in automation and robotics frontier technologies. |
| ARKW (ARK Next Generation Internet ETF) | 09/30/2014 | $2.51B | 0.82% | Explores trends in the digital economy and internet tech. |
| ARKX (ARK Space Exploration & Innovation ETF) | 03/30/2021 | $399.8M | 0.75% | Focuses on space innovation and related technologies. |
Source: ARK Official Website
ARK’s portfolio style is highly concentrated in high-growth and tech-driven sectors. The following table provides a snapshot of the top five holdings in each ETF as of September 10, which can serve as a useful reference for investors interested in these themes:
| ETF | Top 5 Holdings (as of 9/10) |
|---|---|
| ARKF | Shopify (9.92%), Robinhood (6.94%), Coinbase (6.62%), Roblox (4.56%), SoFi (4.27%) |
| ARKG | Tempus AI (11.73%), CRISPR Therapeutics (9.23%), Twist Bioscience (5.07%), Recursion Pharmaceuticals (5.01%), Natera (4.69%) |
| ARKK | Tesla (10.87%), Roku (6.42%), Coinbase (6.30%), Roblox (5.84%), Tempus AI (5.80%) |
| ARKQ | Tesla (11.35%), Kratos Defense (9.33%), Teradyne (7.59%), Palantir (6.46%), Rocket Lab USA (5.49%) |
| ARKW | Tesla (8.32%), Roku (5.80%), Roblox (5.50%), Coinbase (5.50%), ARK Bitcoin ETF (5.37%) |
| ARKX | Kratos Defense (10.01%), Rocket Lab USA (9.64%), AeroVironment (6.58%), L3Harris Technologies (6.29%), Teradyne (5.96%) |
Final Thoughts
Due to their high volatility and concentrated exposure, ARK ETFs may not be suitable for all investors. High returns often come with high risks, and the disruptive innovation ARK focuses on inherently involves a higher failure rate.
Investors in ARK’s funds should be prepared for elevated risk tolerance and fully understand ARK’s core thesis: a belief that disruptive technologies will fundamentally reshape how society operates and, over time, deliver substantial long-term outperformance.
For more in-depth 13F analysis, don’t miss fiisual’s online 13F database! The English version is coming soon!
