U.S. equities staged an impressive comeback in July following a rocky first half of the year, driven by big tech outperformance and anticipation of a potential slowing in the pace of future rate hikes by the Fed.
Every fund in ARK Invest’s suite of ETFs saw positive returns during the month, led by the ARK Fintech Innovation ETF (ARKF), the flagship ARK Innovation ETF (ARKK), and the ARK Next Generation Internet ETF (ARKW). ARKF and ARKW were the firm’s most popular ETFs in June, as measured by net inflows, according to VettaFi.
ARKF returned 17.2% over a one-month period, ARKK returned 13.8%, and ARKQ returned 13.7%, according to VettaFi. The momentum has continued, and over a one-week period, ARKF, ARKK, and ARKW have returned 13%, 7.9%, and 11.9%, respectively, according to VettaFi.
ARKK invests in companies that are poised to profit from “disruptive innovation” like artificial intelligence, DNA technologies, energy innovation, automation, financial technology, and the increased use of cloud computing.
ARKF invests in companies deemed to be engaged in the theme of fintech innovation, defined as the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works. This includes transaction innovations, blockchain technology, risk transformation, frictionless funding platforms, customer-facing platforms, and new intermediaries, according to the fund’s website.
Companies within ARKW are focused on and expected to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new, and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure, and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media, according to the fund’s website.
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