ARK Invest Europe has made its long-awaited entry into the European ETF market with the launch of three actively managed ETFs covering innovation, genomics and artificial intelligence (AI).
The three ETFs are listed on Deutsche Borse and set to list on the London Stock Exchange and CBOE Amsterdam tomorrow while Euronext Milan and Six Swiss Exchange listings are due “in the coming weeks”.
Each ETF has a total expense ratio (TER) of 0.75%.
It brings the UCITS versions of the group’s flagship $7.7bn ARKK Innovation ETF and its $1.1bn ARK Genomic Revolution ETF to the continent for the first time, while the AI and robotics ETF is a freshly launched strategy for European investors.
The three ETFs are:
ARK Innovation UCITS ETF (ARKK)
ARK Genomic Revolution UCITS ETF (ARKG)
ARK Artificial Intelligence & Robotics UCITS ETF (ARKI)
ARKK targets companies involved in ‘disruptive innovation’, defined as businesses making technology-enabled new products or services that will “surpass the historical milestones of the first and second industrial revolutions”.
According to the group, it focuses on five innovation platforms comprising AI, robotics, multiomic sequencing, public blockchains and energy storage.
Cathie Wood (pictured), founder, CEO and CIO of ARK Invest, commented: “ARKK represents our best ideas, drawing from a decade-long track record to target companies at the forefront of disruptive innovation.
“With an existing $14bn global asset base, we are excited to bring this strategy, designed with a five-year investment time horizon, to European investors.”
ARKG targets companies involved in the ‘genomic revolution’, focused on extending and enhancing the quality of human life via genomic sequencing, analysis, synthesis or composition.
It aims to invest across multiple sectors including healthcare, information technology, materials, energy and consumer discretionary.
Finally, ARKI will invest in businesses involved in AI, autonomous technology and robotics and is the only actively managed AI ETF in Europe.
The group hopes to capture demand for multi-thematic ETFs in Europe, backed by its strong research capabilities and reputation.
Wood added AI reduced the cost of the written word from $300-400 to mere cents, while AI training costs are falling 75% annually.
“This gives us confidence that AI will be the catalyst for dramatic change across the economy, heralding a future where global equity market value tied to innovation rises from 16% today to over 60% by 2030,” she said.
Wood added the launches are not just a result of increased interest from European investors, but a “declaration of our long-term commitment to Europe”.
ARK acquired thematic specialist Rize ETF from Martin Gilbert’s AssetCo last September in a cut-price deal of £5.25m.
The Rize ETF brand will live on as the group’s “sustainable sub-brand”.
