Cathie Wood’s ARK Invest has partnered with Swedish brokerage firm Avanza to offer investors an active fund based on the flagship ARK Innovation ETF (ARKK).
The Avanza Disruptive Innovation fund is managed by ARK Invest and is available to local investors with an all-in fee of 0.94%.
The product captures between 30 and 80 companies involved in robotics, energy storage, blockchain, artificial intelligence and DNA sequencing and will have no restrictions on the size, sector or location of the companies it can invest in.
While trying to emulate the ARKK ETF, Avanza noted it may deviate from the target portfolio due to investment restrictions, sustainability criteria and transaction costs.
The product’s factsheet states: “The collaboration with ARK Invest is unique. Never before have Swedish savers had the opportunity to invest in companies recommended by the top analysts at ARK Invest.”
In a recent podcast, Wood (pictured) commented: “We are thrilled to be partnering with Avanza on our disruptive innovation strategy.
“I have always been very impressed with the Swedish focus on research and development and the country is really laying out the infrastructure to make innovation happen. There is a DNA in Sweden that we can certainly relate to – we are all about disruptive innovation.
“Over the next few years the market is going sort out who is being disrupted versus the disruptors. Our strategy is being populated by disruptors and it will be favoured over time.”
Avanza’s fund becomes the latest exposure to ARK Invest’s strategies in Europe after Leverage Shares launched a suite of nine short, leveraged and tracker exchange-traded products (ETP) based on the firm’s innovation, next generation internet and genomic revolution strategies in December 2021.
In March last year, Leverage Shares removed the ARK ETF tickers from its ETPs’ names amid a “legal tussle” over intellectual property with Wood’s firm.
After being celebrated as one of the winners of the pandemic-era accommodative monetary policy, the ARKK ETF plummeted 80% from its highs in February 2021 to recent lows in late December last year.
Since then, the product has booked among its strongest months since launching in 2014, up more than 33% since 28 December.