Best ARK ETF for 2022

Written by Sean GraytokUpdated: 21st Mar 2022
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Across fintech, space exploration, autonomous driving, and more, finding the best ARK ETF for your portfolio can be overwhelming.

However, this analysis will help you separate the noise from the signal. But before we examine each of the six funds individually, let’s do some background. 

Best ARK ETF: Background

ARK invests in disruptive technology that has the potential to change an industries landscape. This innovative technology creates simplicity and accessibility while driving down costs — a win-win situation for both consumers and business operators.

This investment firm offers a suite of exchange-traded funds consisting of companies poised to benefit from such disruptive innovation.

ARK has six actively managed ETFs and two index funds. The firm is led by legendary investor Cathie Wood, who has built her career on identifying neglected and misunderstood stocks.

ARK’s foundation is built on five fields ripe for disruption: DNA sequencing, energy storage, robotics, deep learning, and blockchain technology.

Now let’s get to know the funds. 

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Best ARK ETF: Analysis

All ARK ETFs have an expense ratio of 0.75%, which is relatively low for actively managed funds and relatively high compared to generic ETFs.

Each fund holds between 30-50 companies that have a bias toward aggressive growth. Let’s dive into the funds that are rewarding long-term investors.

Percentages updated March 21, 2022.

#1. ARK Innovation ETF (ARKK)

Their flagship ARKK fund aims for thematicmulti-cap exposure across multiple sectors. It was one of the best performing ETFs of 2020, struggled in the latter part of 2021, and is down pretty bad in 2022. 

ARKK is optimized for long-term growth potential by investing in uncorrelated assets.

Since its humble beginnings, ARKK grew its assets under management (AUM) as high as $22 billion and became the world’s largest active ETF.

ARK is weighted across different disruptive innovation “elements.” Remember, these holdings are subject to change, given the nature of an active ETF.

ARKK Top Thematic Elements

  • Cloud Computing 
  • E-Commerce 
  • Molecular Diagnostics 
  • Gene Therapy 
  • Big Data & Machine Learning 

As you can see, ARKK’s thirst for innovation is not limited to one industry. The fund prioritizes disruption, regardless of the sector and its top five holdings support this strategy. 

ARKK Top Five Holdings

  • Tesla (TSLA) 9.66%
  • Teladoc Health (TDOC) 6.73%
  • Roku (ROKU) 6.34%
  • Zoom Video Communications (ZM) 6.05%
  • Block (SQ) 5.97%

The typical number of holdings in the fund ranges from 35-50 companies. You’ll also get some exposure to the best streaming stocks with ARKK.

#2. ARK Autonomous Technology & Robotics ETF (ARKQ)

Next up is ARKQ, which focuses on the energy, automation and manufacturing, materials, and transportation industries. ARKQ has $1.5 billion AUM.

Its thematic elements are more narrow than ARKK and is heavily weighted towards automation.

ARKQ Top Thematic Elements

  • Autonomous Vehicles 
  • Robotics 
  • 3D Printing 
  • Energy Storage 
  • Space Exploration 

The automation economy is well on its way, and ARKQ is identifying the industries due for disruption.

ARK strongly believes the autonomous ride-hailing opportunity is undervalued today, predicting that it should be worth more than $5 trillion by 2024, and $9 trillion by 2029.

ARKQ believes that Tesla will play a dominant role in autonomous ride-hailing, which is why it receives another large allocation in this fund.

ARKQ Top Five Holdings

  • Tesla (TSLA) 10.56%
  • Kratos Defense and Security (KTOS) 8.41%
  • Trimble (TRMB) 7.04%
  • UiPath (PATH) 7.59%
  • AeroVironment (AVAV) 4.99%

As of November 4, 2019, this fund’s name was changed from ARK Industrial Innovation ETF to the “ARK Autonomous Technology & Robotics ETF” to better describe its investing interests.

#3. ARK Next Generation Internet ETF (ARKW)

ARKW invests in companies focused on and expected to benefit from the increased use of cloud computing, new payment methods, big data, and other internet-based products and services.

Its $2 billion worth of assets are diversified across several themes in the internet sector.

ARKW relies on the continued application ofcloud computing stocks, cybersecurity stocks, deep learning, and blockchain technologies to power future performance.

ARKW Top Thematic Elements

  • Cloud Computing & Cybersecurity 
  • E-Commerce 
  • Big Data & Machine Learning 
  • Digital Media 
  • Internet of Things 

Cathie Wood launched ARKW because she believes that “deep learning” – a subset of artificial intelligence – will add $30 trillion in market cap by 2037.

The fund also has exposure to companies developing blockchain technology, the underlying ledger and transaction network that supports bitcoin the asset.

ARKW Top Five Holdings

  • Coinbase (COIN) 8.66%
  • Tesla (TSLA) 8.63%
  • Grayscale Bitcoin Trust (GBTC) 7.44%
  • Block (SQ) 6.76%
  • Roku (ROKU) 5.75%

ARKW’s top holdings are similar to ARKK’s, but the funds diverge as allocation percentages decrease.

For example, ARKK has a 35.5% sector allocation to Health Care while ARKW only allocates 4.2%.

#4. ARK Genomic Revolution ETF (ARKG)

Companies within ARKG are focused on enhancing the quality of human. This ETF has holdings in companies incorporating technological and scientific developments and advancement in genomics into their business.

ARKG has $3.3 billion in AUM and is betting on the growth of next-generation DNA sequencing (NGS) revenues.

ARKG Top Thematic Elements

  • Molecular Diagnostics 
  • Beyond DNA 
  • Gene Therapy 
  • Instrumentation 
  • Bioinformatics 

Some scientists believe humans may become a-mortal by the year 2050.

This means that, barring an unfortunate accident, humans would no longer die from old age or disease like getting hit by a car.

Companies in ARKG are driving the advancements in biotechnology and genetic engineering that would make this possible.

Let’s look at the top companies in this fund.

ARKG Top Five Holdings

  • Exact Sciences (EXAS) 8.23%
  • Teladoc Health (TDOC) 7.62%
  • Ionis Pharmaceuticals (IONS) 5.92%
  • Fate Therapeutics (FATE) 4.57%
  • Signify Health  (SGFY) 4.02%

ARKG allocates 95.9% of its holdings to the Health Care sector, and the rest goes to Information Technology.

#5. ARK Fintech Innovation ETF (ARKF)

ARKF was launched in 2019 and invests in companies engaged in financial technology. It has $1.4 billion AUM. 

A company must engage in one of the following to satisfy the fund’s requirements:

  1. It derives a significant portion of its revenue or market value from FinTech innovation.
  2. Its primary business is in products or services that rely on financial technology to better serve consumers.

ARKF is interested in technology that enables new products or services that potentially changes the way the financial sector works.

ARKF Top Thematic Elements

  • Transaction Innovations 
  • Customer Facing Platforms 
  • Frictionless Funding Platforms 
  • Risk Transformation 
  • Blockchain Technology 

ARK’s research suggests that US digital wallets could be valued at $800 billion by 2024, 27x the $29.5 billion today. ARKF has been successful in picking winners thus far in fintech.

ARKF Top Five Holdings

  • Block (SQ) 13.85
  • Coinbase (COIN) 10.15%
  • Shopify (SHOP) 9.00%
  • Twilio (TWLO) 6.36%
  • UiPath (PATH) 5.04%

The list of fintech stocks will expand as financial functionality gets built into more products and services.

For example, Twitter integration with the Lightning Network brings payment rails to 200 million users around the globe. 

Given the rapid pace of innovation in DeFi, it will be interesting to watch the evolution of the term “fintech.”

Is crypto and DeFi included in fintech? What happens to PayPal, and Visa if they don’t aggressively adopt new crypto networks?

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#6. ARK Space Exploration & Innovation ETF (ARKX)

ARK launched its newest active ETF on March 30, 2021 — the ARK Space Exploration & Innovation ETF (ARKX).

ARKX Top Thematic Elements

  • Aerospace Beneficiaries
  • Orbital Aerospace 
  • Enabling Technologies 
  • Suborbital Aerospace 

As you can see, the fund is currently weighted towards companies that will benefit from space-related innovation and not just companies driving the breakthroughs. 

ARKX Top Five Holdings

  • Trimble Inc (TRMB) 9.52%
  • The 3D Printing ETF (PRNT) 7.79%
  • L3Harris Technologies (LHX) 6.00%
  • Kratos Defense & Security (KTOS) 5.95%
  • Iridium Communications (IRDM) 5.86%

Some were surprised to see Virgin Galactic’s relatively small allocation of 1.95% at the fund’s inception. ARK has since removed Virgin Galactic entirely. 

We expect these allocations to drastically change once space exploration becomes more viable, and when private companies like SpaceX, Starlink, or Blue Origin go public. 

Investors should know that while ARKX includes the best space stocks, it is not a pure-play space investment. 

For example, the ETF owns names like Netflix (NFLX), Google (GOOG), Amazon(AMZN), and Palantir (PLTR).

How to Invest in the Best ARK ETF

Fortunately, ARK’s popularity has made it easy for investors to open up a position in one of its six active ETFs.

Investors can head to nearly any online stock broker and purchase the ETF. We recommend using Vanguard or Charles Schwab.

These are two of the most reputable brokerage firms in the industry and can serve as a one-stop-shop for beginners and experts alike.

Simply open an account, connect your bank, and invest in your first ARK Active ETF.

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Best ARK ETF: FAQs

Is ARKK a good buy?

ARKK is a good buy if you’re seeking exposure to growth stocks with ambitious initiatives.

Does ARKK pay a dividend?

ARK Innovation ETF pays an annual dividend of $0.78 per share, equating to an annual dividend yield of 1.19%.

What is ARKK ETF?

ARKK ETF is one of the six active exchange-traded funds offered by Cathie Wood’s ARK Investment firm.

This ETF was one of the best performing exchange-traded funds in 2020, and it is one of the largest active ETFs in the world. Its top holdings include Tesla, Square, Roku, and CRISPR Therapeutics.

Which ARK ETF is best?

ARK Innovation ETF (ARKK) is considered its flagship fund and is a combination of all the other Ark funds. 

Deciding which ARK ETF is the best, ultimately depends on your investing goals and appetite for risk. Most investors speculate that ARK’s newest ETF – ARK Fintech Innovation (ARKF) – will be Cathie Woods’ next winner.

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Bottom Line: Best ARK ETF

All eyes are on ARK. The pressure to deliver has never been greater.

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This article is for informational purposes only, and it is not intended to be investment advice. Read our editorial guidelines and public equities research methodology to learn more about how we selected the best ARK ETF. 

Sean Graytok
Sean Graytok

Sean Graytok is our Co-Founder and is a recognized expert in investing, cryptocurrency, and financial management. His work has been cited in leading industry publications, such as InvestorsPlace and Business Insider. Sean is interested in the people and companies who are driving financial innovation.