ARK Next Generation Internet ETF has delivered 410% returns over the past decade but is now rated 'Hold' due to high valuations. ARKW focuses on next-gen internet themes like cloud services, fintech, cryptocurrency, and streaming, with a top-heavy portfolio in large tech stocks. High P/E ratios and lack of GAAP earnings in top holdings raise concerns about overvaluation and management's reluctance to lock in profits.
ARKW's heavy Bitcoin allocation positions it for massive gains. Trump's Pro-Bitcoin moves signal institutional and government accumulation. The Bitcoin Rally is far from over, due to record inflows and on-chain activity suggesting accumulation by whales and retail investors.
I am downgrading ARKW from a buy to a hold after a 29% return due to high valuations and technical downside risks. ARKW is highly volatile, with significant exposure to Tesla and Bitcoin, comprising nearly a quarter of its holdings. The ETF's high price-to-earnings ratio and lofty PEG ratio, combined with SMID cap focus, add to its risk profile.
ARKW ARKW 29 Dec 2021 Paid | Annual | $3.31 Per Share |
ARKW ARKW 29 Dec 2020 Paid | Annual | $1.89 Per Share |
ARKW ARKW 27 Dec 2018 Paid | Other | $5.54 Per Share |
ARKW ARKW 27 Dec 2017 Paid | Other | $0.94 Per Share |
ARKW ARKW 24 Dec 2015 Paid | Other | $0.53 Per Share |
ARKW ARKW 29 Dec 2021 Paid | Annual | $3.31 Per Share |
ARKW ARKW 29 Dec 2020 Paid | Annual | $1.89 Per Share |
ARKW ARKW 27 Dec 2018 Paid | Other | $5.54 Per Share |
ARKW ARKW 27 Dec 2017 Paid | Other | $0.94 Per Share |
ARKW ARKW 24 Dec 2015 Paid | Other | $0.53 Per Share |
BATS Exchange | United States Country |
The fund represents an actively-managed exchange-traded fund (ETF) with a focus on investing primarily in domestic and foreign equity securities of companies integral to the theme of next-generation internet. The investment strategy emphasizes a substantial allocation of its assets—at least 80%—towards companies poised at the forefront of internet evolution, encompassing both established and emerging markets. The fund operates with an active management approach, seeking to capitalize on the growth potential of next-generation internet technologies and services. It is structured as a non-diversified fund, implying a concentrated investment in specific sectors or geographical locations, aiming to offer investors targeted exposure to the next wave of internet innovation.
The primary product offered by the fund is the investment in equity securities, including common stocks, partnership interests, business trust shares, and other forms of equity investments or ownership interests in business enterprises that are significantly involved in the development or exploitation of next-generation internet technologies. This focuses on entities that drive or benefit significantly from advancements in internet infrastructure, online services, digital communication, and related sectors.