2021 is only just getting underway, but the Ark Innovation ETF (ARKK), an actively managed Exchange-Traded Fund (ETF) from Ark Invest, is continuing its strong run. So far this year the Fund has seen nothing but inflow and is now on the verge of becoming one of the top 50 listed ETFs by Assets Under Management (AUM).
ARKK’s impressive performance in 2021 is attributable to different sources from 2020. Last year, the stocks like Zoom, Telsa and Docusign were core growth drivers for the Fund. This year, ARKK’s top performers have been its biotechnology stocks. As of January 14, ARKK is comprised of 30% biotech stocks, and these stocks are up by almost 400% collectively YTD. Pacific Biosciences and Intellia Therapeutics lead the pack and are up 45% and 53% respectively.
If that isn’t interesting enough for investment firms, it’s also worth noting that five out of fifty ARKK constituents are part of the S&P 500. That means any gains in the ETF are in essence all alpha for the investment manager’s portfolio.
John Lanaro, Global Head of ETFs at RIMES, comments: “RIMES’ service enables investment managers to dig into the constituent level data of ETFs, which is an important feature when it comes to understanding risk exposure. Additionally, constituent-level data views enable firms to see where value lies within active, transparent ETFs such as ARKK.
“With RIMES, investment managers can track the changes in such portfolios over time, enabling them to better report to clients and to make better investment choices. This is the value-add of RIMES: providing investment firms with the timely, accurate and granular operational data they need to find strategic insights and improve decision making.”
Contact RIMES to find out how we can help you streamline ETF data capture, eliminate costly internal processes and enable daily exposure insight, aggregation and reporting.
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