ARKG Forecast, Top Holdings, and Analysis

Written by Sean GraytokUpdated: 27th May 2022
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This ARKG forecast will analyze the ARK Genomic Revolution ETF and help you decide if it’s a buy. 

ARKG Forecast: The Background

Companies within ARKG are focused on extending and enhancing the quality of human life by making advancements in genomics.

These companies are pulling forward growth in CRISPR, targeted therapeutics, bioinformatics, molecular diagnostics, stem cells, and agricultural biology.

The ARK Genomic Revolution ETF exclusively invests in companies it believes can appreciate 15% per year, a hurdle rate that would double your money every five years.

ARKG ETF Details

  • Ticker: ARKG
  • Type: Active Equity ETF
  • Inception Date: October 31, 2014
  • Expense Ratio: 0.75%
  • Fund AUM: $2.44 billion
  • Typical Number of Holdings: 40-60
  • Weighted Avg. Market Cap: $38 billion
  • Median Market Cap: $5 billion
  • Active Share (S&P 500): 98%

ARKG Top Holdings

  • Exact Sciences Corporation (EXAS) 8.70%
  • Ionis Pharmaceuticals, Inc. (IONS) 8.15%
  • Teladoc Health, Inc. 5.09%
  • Signify Health, Inc. (SGFY) 4.45%
  • CRISPR Therapeutics AG (CRSP) 4.27%
  • Vertex Pharmaceuticals Inc. (VRTX) 4.07%
  • Fate Therapeutics, Inc. (FATE) 3.87%
  • Incyte Corporation (INCY) 3.84%
  • Twist Bioscience Corp. (TWST) 3.69%
  • CareDx, Inc. (CDNA) 3.59%

#1. Exact Sciences Corp (EXAS) 8.70%

Exact Sciences is a molecular diagnostics company that tries to detect early-stage cancers.

The earlier a cancer is detected, the less time it has to develop mutations, making it easier to target in treatments later on — hence Exact Sciences’ preemptive approach to cancer treatment.

Here are some of the exciting technologies in Exact Sciences’ pipeline:

  • Building a cancer detection platform
  • Improving cancer care platform to include liquid and tissue-based tests
  • Adding a biomarker-based liquid biopsy technology to detect cancers and precancers from a blood sample
  • Collaborating with the Mayo Clinic to identify biomarkers associated with the 15 deadliest cancers

EXAS investors are counting on the company to lead three of the largest impact opportunities in diagnostics in the United States.

This includes multi-cancer screening ($25 billion), colorectal cancer screening ($18 billion), and minimal residual disease and recurrence monitoring ($15 billion).

#2. Ionis Pharmaceuticals Inc (IONS) 8.15%

Ionis Pharmaceuticals is a leader in RNA-targeted therapeutics — its antisense technology treats illnesses that other therapeutics have traditionally failed.

Like the Moderna (MRNA) bioplatform, Ionis has an ‘antisense technology platform’ that serves as a springboard for drug discovery. It has been crafting this launchpad for thirty years.

There are 40+ medicines in the pipeline designed to treat various ailments, including cancer and cardiovascular, neurological, infectious, and pulmonary diseases.

This streamlined process allows for a faster path from the identification to the discovery phase of next-gen medicines.

#3. Teladoc Health Inc (TDOC) 5.09%

Teladoc is the global leader in virtual healthcare, with more than 12,000 clients and 15 million visits since 2015.

It is the world’s only integrated virtual care system for delivering “whole-person health,” including primary care, acute, chronic, and complex health needs.

TDOC bulls are counting on digitization replacing or augmenting health care services that were traditionally done in person.

TDOC revenue is expanding, but the company remains unprofitable. 

#4. Signify Health (SGFY) 4.45%

Signify Health is a healthcare platform that uses “advanced analytics, technology, and nationwide healthcare provider networks to create and power value-based payment programs”.

This relatively small company went public in February 2021 at a $7 billion valuation. 

In addition to the analytics platform, Signify Health conducts in-home visits to collect health information on behalf of its customers. 

#5. CRISPR Therapeutics (CRSP) 4.27%

CRISPR Therapeutics is a Swiss-American biotech company that has an established portfolio of programs that leverage CRISPR/Cas9 to tackle a range of diseases. 

The small, but ambitious company has a pipeline of products in the areas of hemoglobinopathies, immuno-oncology, regenerative medicine, and in-vivo treatments. A number of these products are currently in clinical trials. 

The next holding in ARKG, Vertex Pharmaceuticals Inc., recently formed a lucrative partnership with CRISPR Therapeutics that focuses on gene editing. 

#6. Vertex Pharmaceuticals Inc (VRTX) 4.07%

Vertex is a biopharmaceutical company that “creates new possibilities in medicine to cure disease and improve people’s lives.

The company was founded in 1989 and has been one of the best-performing stocks in the S&P 500 (VOO) since its inclusion in 2013.

Vertex’s pipeline is focused on viral infections, inflammatory and autoimmune disorders, and cancer.

Vertex is currently after a cure for cystic fibrosis, a rare, life-threatening genetic disease that damages the lungs and digestive system.

Vertex paid CRISPR Therapeutics (CRSP) $900 million upfront with a $200 million milestone kicker to continue their gene-editing project for sickle cell disease and beta-thalassemia.

#7. Fate Therapeutics Inc (FATE) 3.87%

Fate Therapeutics is a clinical-stage biopharmaceutical company dedicated to developing cellular immunotherapies for cancer and immune disorders.

Fate’s “ex vivo cell programming” approach to therapeutics differentiates it from competitors.

This means that Fate takes cells from a living body, reprograms them outside of the body, and then returns them to the living body.

FATE shareholders believe this paradigm-shifting approach will maximize the safety and efficacy of cellular immunotherapies because it is reproducible, scalable, and cost-effective.

#8. Incyte Corporation (INCY) 3.84%

Incyte Corporation is an American multinational pharmaceutical company that develops and manufactures prescription biopharmaceutical medications in several areas like oncology, inflammation, and autoimmunity. 

The company is known for its tenacious efforts in Research & Development.  Incyte Corporation believes that “investment in strong science and the relentless pursuit of R&D excellence can translate into new solutions that can positively impact patients’ lives”. 

#9. Twist Bioscience Corp (TWST) 3.69%

Twist Bioscience is a synthetic biology company that makes synthetic DNA and DNA products for companies in various industries, including medicine, agriculture, industrial chemicals, and data storage.

Companies that partner with Twist are looking for high-quality, affordable, synthetic DNA that is scalable and fully customizable.

Twist is accelerating biotech applications beyond the field of medicine. Remember, DNA is software — it’s only a matter of time before we’re creating most of our food and materials in laboratories.

#10. CareDx Inc (CDNA) 3.59%

CareDx develops and delivers a diagnostic surveillance solution for heart, kidney, and other organ transplants.

It is the leading partner across U.S. transplant centers, with products and services pre-and post-transplant.

The company began offering a single product in heart transplants, then launched multi-product solid organ transplants, and now provides a platform for all transplants.

CDNA bulls expect the company to play a significant role in advancing digital and artificial intelligence applications in the transplant space.

ARKG Forecast: Sector Technology Breakdown

Here’s the breakdown of the sub-sectors that ARKG companies are in:

  • Targeted Therapeutics: 25.8%
  • Molecular Diagnostics: 16.6%
  • Bioinformatics: 16.6%
  • Instrumentation: 12.6%
  • Beyond DNA: 12.5%
  • Next-Generation Oncology: 9.2%
  • Gene Therapy: 5.9%
  • Agricultural Biology: 0.6%
  • Stem Cells: 0.03%

ARKG Forecast: Frequently Asked Questions

Is ARKG a buy?

ARKG is a buy if you can stomach severe volatility and unprofitable companies. However, those risks come with potential rewards — ARKG provides exposure to the best names in the biotech industry.

Why is ARKG dropping?

ARKG could be dropping over fear of rising interest rates. Many of the holdings in ARKG trade at high multiples, and rising rates make those future earnings worth ‘less.’ However, there’s rarely a single reason why a stock or ETF is dropping.

What are alternatives to ARKG?

Here are popular alternatives to ARKG:

  • IShares Nasdaq Biotechnology ETF (IBB)
  • SPDR S&P Biotech ETF (XBI)
  • First Trust Amex Biotechnology Index (FBT)
  • VanEck Vectors Biotech ETF (BBH)
  • Global X Genomics & Biotechnology (GNOM)

Bottom Line: ARKG Forecast

If we’re truly entering the biotech decade, then Cathie Wood’s hurdle rate might be conservative. The Genomic Revolution is upon us.

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 researched the ARK Genomic Revolution ETF. 

Sean Graytok
Sean Graytok

Sean Graytok is our Co-Founder and leading expert in investing and financial management. His work has been cited in leading industry publications, such as InvestorPlace and Business Insider. Sean is interested in the people and technologies that are improving the world.