On 18 April, ARK Invest Europe (formerly Rize ETF) unveiled its first batch of actively managed UCITS ETFs.
The new ETFs are now listed on the Deutsche Boerse, London Stock Exchange and CBOE Amsterdam, with listing on the Borsa Italiana and the SIX Swiss Exchange due in the coming weeks.
The offerings include the ARK Innovation UCITS ETF, the ARK Artificial Intelligence & Robotics UCITS ETF and the ARK Genomic Revolution UCITS ETF.
Innovation
The ARK Innovation UCITS ETF is designed for those looking to invest in companies that present the best risk-reward opportunities from ARK’s five innovation-based investment themes: Artificial Intelligence, Robotics, Energy Storage, Multiomic Sequencing and Public Blockchains. The ETF is backed by industry-recognised, first-principles research on technology, conducted by a team of domain experts who cross-collaborate on active stock selection.
The timing for this ETF is particularly pertinent as these converging technologies are expected to lead to significant macroeconomic shifts, potentially increasing the annualised equity return associated with disruptive innovation significantly by 2030. We project that the global equity market value tied to innovation could swell from 16% to over 60% by 2030, marking a significant shift in investment dynamics. Today’s era of technological convergence represents a revolutionary leap forward, which we believe has the potential to herald in a new age of opportunity, growth and societal advancement, and open up a new chapter in the story of human prosperity.
Key companies within this ETF include Tesla, known for its advancements in autonomous electric mobility and Coinbase, the world’s leading digital currency exchange platform.
Artificial intelligence and robotics
Next, the ARK Artificial Intelligence & Robotics UCITS ETF aims to invest in companies involved in artificial intelligence, autonomous technology and robotics.
The launch of ChatGPT in December 2022 truly captivated a global audience, swiftly reaching 100 million users within two months. This achievement eclipsed the growth rates of platforms like TikTok, which took a year, and YouTube and Facebook, which both took over four years, to hit the same milestone.
Such rapid growth underscores AI’s expanding role in our daily lives, hinting at profound sector-wide transformations. As AI training costs plummet by 75% annually – surpassing the pace predicted by Moore’s Law – we are at the brink of a technological affordability and accessibility revolution.
This cost reduction paves the way for autonomous humanoid robots, promising a future where these machines transcend industrial use to become everyday partners and helpers. In lockstep with these advancements, autonomous vehicles are emerging as the ultimate mobile devices, promising to carry us into an era of unparalleled mobility and freedom. This evolution in AI and robotics stands as a testament to the transformative societal and economic potential on the horizon.
Notable companies within this ETF include UiPath, which specialises in Robotic Process Automation and Kratos Defense, known for its advanced defence technology.
Genomic revolution
Lastly, the ARK Genomic Revolution UCITS ETF provides an investment avenue into companies involved in the genomic revolution.
The plummeting costs of genomic sequencing and the rise of multiomic technologies are unlocking unprecedented opportunities in healthcare. Today, our journey into the molecular fabric of life itself is transforming our approach to diseases that have long evaded cure, particularly rare genetic disorders and cancer. In 2023, the medical community achieved a milestone with the first approvals for gene editing treatments for beta thalassemia and sickle cell disease in both the US and Europe, signalling a new dawn for patients burdened by these conditions.
Meanwhile, in the UK, in 2022, a young leukaemia patient found hope through a pioneering T-cell therapy, marking another step forward in our battle against cancer. This genomic revolution, underpinned by innovations in AI and automation, is not merely about extending the boundaries of traditional medicine; it's about reshaping our understanding of life, health and the potential for healing on a molecular level. The implications for patient care, biological sciences and the broader economy are profound, and we have forecasted a future where the treatment of once-intractable diseases becomes a reality for all.
The ETF features companies like Exact Sciences, which is innovating in cancer detection and CRISPR Therapeutics, a leader in gene editing technology.
Innovation is our cornerstone
Our mission is to empower investors to capitalise on the most promising innovation of our age. The convergence of disruptive technologies across sectors is accelerating at an unprecedented pace, and we believe it presents one of the most exciting investment opportunities right now.
The launch follows the successful rebranding of Rize ETF to ARK Invest Europe, after its acquisition by ARK Invest in September 2023. The new ETFs align with ARK Invest Europe’s strategy to offer a blend of active and systematic investment solutions, catering to the evolving needs of global investors.
Innovation is the key to economic growth, achieving our sustainability goals and innate to the rise of global megatrends. We believe that innovation introduces new technologies and methods, improves productivity and creates new industries, which in turn leads to job creation, increased standards of living and enhanced societal well-being:
Disruptive innovation like AI and Robotics, Multiomic Sequencing or Blockchain Technology are central to exponential growth and represent an unprecedented investment opportunity.
Investing sustainably is innately linked with investing in innovation, especially in sectors like renewables and energy storage.
Global megatrends such as digitisation, deglobalisation or ageing are powered by innovation across sectors.
Disclaimer
Communications issued in the European Economic Area (“EEA”): This marketing communication has been issued by IQ EQ Fund Management (Ireland) Limited (“IQ EQ”) acting in its capacity as management company of ARK Invest UCITS ICAV (“ARK Invest”). IQ EQ is authorised and regulated by the Central Bank of Ireland. IQ EQ is registered in Ireland with registration number 148223.
Communications issued in jurisdictions outside of the EEA: This marketing communication has been issued by ARK Invest International Ltd (“ARK UK”) which is an Appointed Representative of Aldgate Advisors Limited, a firm authorised and regulated by the Financial Conduct Authority (FCA FRN 763187). ARK UK is registered in England and Wales with registration number 11770079.
This is a marketing communication. This is not a contractually binding document. Please refer to the prospectus, Fund-specific supplement and Key Investor Information Document (the “KIID”) or Key Investor Document (the “KID”) (as relevant) of the relevant Fund and do not base any final investment decision on this communication alone.
You should seek professional investment advice before making any decision to invest in a Fund.
This marketing communication is not being provided to you on the basis that you are a client of IQ EQ or ARK UK. Neither IQ EQ nor ARK UK is acting on your behalf and neither entity is responsible for providing protections that would otherwise be afforded to clients of IQ EQ or ARK UK. This marketing communicationis for information purposes only. Its contents, and the fact of its distribution, do not constitute investment advice, nor do they constitute tax, legal or any other form of advice or service. It does not constitute or form part of any offer to issue or sell, or the solicitation of any offer to buy or sell any investment. It shall not form the basis of, or be relied upon in connection with, any contract. Information and opinions contained herein have been compiled from sources believed to be reliable but neither IQ EQ nor ARK UK nor any of their respective partners makes any representations as to its accuracy or completeness. Any opinions, forecasts or estimates herein constitute a judgement that is subject to change without notice. IQ EQ and ARK UK disclaim all liability and responsibility arising from any reliance placed by any person on the information contained within this marketing communication.
The ARK Innovation UCITS ETF, ARK Artificial Intelligence & Robotics UCITS ETF and ARK Genomic Revolution UCITS ETF are actively managed funds and an investment in which involves significant risk and is subject to the share price volatility of technology-focused companies, the risk of failure of new technologies to replace existing ones or to be approved by governments / regulators or to achieve their aim, the failure of individual companies to successfully capitalise on new technologies and reach profitability, competition, government intervention or excessive regulation, delays to approvals or lack of financial support; and legal attacks from competitors.
Capital at Risk Warning – Please note that the value of an investment and any income taken from it is not guaranteed and can go down as well as up. You may not get back the amount you originally invested. If your investment currency is different to the Funds’ currency of denomination (USD) or the currencies in which the Funds’ assets are denominated (which may be a range of different global currencies), then the return you will get from your investment may increase or decrease as a result of currency fluctuations between your investment currency and such currencies.
The Funds referred to in this marketing communicationare offered by ARK Invest UCITS ICAV (“ARK Invest”). ARK Invest is an open-ended Irish collective asset management vehicle which is constituted as an umbrella fund with variable capital and segregated liability between its sub-funds (each, a “Fund”) and registered in Ireland with registration number C193010 and authorised by the Central Bank of Ireland as a UCITS. ARK Invest is managed by IQ EQ Fund Management (Ireland) Limited (“IQ EQ”). The prospectus (including the Fund-specific supplements and other supplements), the KIIDs/KIDs the constitutional document of ARK Invest and the latest annual and semi-annual reports of ARK Invest, the latest Net Asset Values of the Funds and details of the underlying investments of the Funds (together, the “Fund Information”) are available at https://europe.ark-funds.com/. Any decision to invest must be based solely on the Fund Information. Investors should read the Fund-specific risks in ARK Invest’s prospectus, Fund-specific supplements and the KIIDs/KIDs. The indicative intra-day net asset values of the Funds are available at http://www.solactive.com.
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The Funds may be registered or otherwise approved for distribution to the public or certain categories of investors in one or more jurisdictions. Where this is the case, a country-specific web page and copies of the Fund Information will be available at https://europe.ark-funds.com/.The fact of such a registration or approval, however, does not mean that any regulator (including the FCA) has determined that the Funds are suitable for all categories of investors.
United Kingdom: This is a financial promotion. For the purposes of the United Kingdom Financial Services and Markets Act 2000 (“FSMA”), ARK Invest is a UCITS that has been recognised by the Financial Conduct Authority (the “FCA”) pursuant to s.264 of the UK Financial Services and Markets Act 2000. The Fund Information is available in English free of charge upon request from the Facilities Agent in the United Kingdom, FE fundinfo (UK) Limited, Unit 1.1, First Floor, Midas House, 62 Goldsworth Road, Woking, Surrey, GU21 6LQ, England.
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Austria: This is a marketing communication and serves exclusively as information for investors. Under no circumstances may it replace advice regarding the acquisition and disposal of investments which may result in a total loss of the investment. The Fund Information in English (and the KIDs in German language) can be obtained free of charge upon request from the Facilities Agent in Austria, FE fundinfo (Luxembourg) S.à.r.l., by contacting fa_gfr@fefundinfo.com.
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