Ark Autonomous Technology & Robotics ETF (ARKQ)
BATS BATS Primary 
XBER Summary
ARKQ: Rising Robotics Tide Lifts All Boats Temporarily, I Prefer The Options Route Here
The ARK Autonomous Technology & Robotics ETF (ARKQ) offers tactical trading potential amid renewed AI/robotics enthusiasm, but long-term risk remains elevated at current valuations. ARKQ's concentrated portfolio — top 8 holdings comprise half the fund — mirrors broader market risk-on/risk-off dynamics, with high volatility and limited long-term outperformance versus QQQ. Valuations are stretched, with ARKQ trading at 52x trailing earnings and 14x sales, making it more suitable for short-term trades than core long-term allocations.
ARKQ: Betting On The Future At Triple-Digit P/Es Rarely Ends Well
ARKQ trades at an average 89.78x P/E (equal-weighted), far above the NASDAQ, making it extremely expensive. Holdings grow EPS by 17.6% annually, below top tech leaders, yet the ETF's P/E is roughly twice as high. Only 84% of holdings are profitable, with cash-burning companies excluded from my P/E calculation.
ARKQ: Alpha Is There, But It's Hidden Between The Lines
ARKQ stands out with a strong buy quant rating and has outperformed competitors, tripling their 5-year returns through concentrated, selective holdings. What gave ARKQ the boost over other robotics ETFs? Its secret is the strong exposure to urban air mobility. This allowed it to benefit from the boom in aerospace, defense, and security stocks.
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Ark Autonomous Technology & Robotics ETF Profile
| BATS Exchange | US Country |
Overview
The fund is a pioneering investment entity focusing on the future of technology and innovation. It distinguishes itself by actively managing a portfolio that primarily invests in domestic and international equity securities of companies pivotal in autonomous technology and robotics. The fund's strategic concentration on disruptive innovation seeks to capitalize on the advancement and implementation of autonomous technologies and robotics, underscoring its commitment to at least 80% of its assets in this visionary domain. The fund operates as a non-diversified entity, allowing for significant investment in chosen equity securities, including common stocks, partnership interests, business trust shares, and other forms of equity investments or ownership interests in business enterprises, showcasing a robust engagement in the future of technology and innovation.
Products and Services
- Equity Securities of Autonomous Technology and Robotics Companies
The fund's primary investment focus is on equity securities of companies engaged in the development and application of autonomous technology and robotics. This includes common stocks, partnership interests, business trust shares, and other equity investments that represent an ownership interest in entities actively involved in the advancement of technologies that aim to revolutionize industries through automation and robotics.
- Investment in Disruptive Innovation
By dedicating its portfolio to disruptive innovation, the fund targets companies that stand at the forefront of technological breakthroughs. This approach not only aims to provide significant growth potential but also allows the fund to be a part of the evolution of industries and economies worldwide. The focus on disruptive innovation underscores the fund’s commitment to identifying and investing in companies that are set to change the world with their technologies.
- Non-Diversified Portfolio Strategy
Embracing a non-diversified portfolio strategy, the fund invests substantially all its assets in the equity securities of a concentrated selection of companies. This strategy allows the fund to make significant investments in targeted sectors, offering the potential for higher returns by leveraging the growth of businesses leading the charge in autonomous technology and robotics, contrasting with diversified funds which spread their investments across a wider array of sectors.
Contact Information
